[Marxism] Mumia Abu-Jamal:

[Ruthless Critic of All that Exists]

On Wed, Oct 1, 2008 at 3:20 AM, Walter Lippmann <walterlx at earthlink.net> wrote:
> Ruthless quotes Mumia, not Walter Lippmann, and asks:
> "But in the end, this really isn't about Wall Street. It's about
> reducing the risk that something really bad happens. It's about
> limiting the damage from the past decade's financial excesses.
> Unfortunately, there is no way to accomplish that without also
> extending a helping hand to Wall Street. That is where our credit
> markets are, and we need them to start working again."
>
> <http://www.nytimes.com/2008/10/01/business/economy/01leonhardt.html
>
> What would be a Marxist counterargument to the above?
> =================================================================
>
> Capitalist free marketeering and opposition to society taking the
> responsibility for food, clothing and shelter for the human beings
> who live in it, while guaranteeing full freedom for the corporations
> and banks to make bad loans, which they now expect all of us to pay
> for, is responsible for the mess the United States is in.
>
> What's necessary now is a radical reduction in military spending,
> the immediate and unconditional withdrawal of U.S. troops from Iraq
> and Afghanistan. Nationalize all of the banks and insurance companies.
> Fire the managers and investigate to see if they should be charged
> criminally for their activities which led up to this mess.
>
> For years they've told us there was no money for single-payer health
> insurance or other needed programs, but now, when these same people
> say there's a big problem, they have found all the money which they
> need: in our pocket books and our tax payments.
>
>
> Walter Lippmann
> Los Angeles, California

These are all valid points, Walter. But you didn't answer the question, though.

The question is this:

(1) Is the statement "a modern economy can't function when people
can't easily get credit" true?

(2) If it is true, then "nationalizing the banks" (your solution)
seems to be intended to restore the flow of credit through the
nationalized banks. But, bank nationalization will probably
immediately lead to a stock market fal (panicky investors selling off
thinking that their company might be nationalized next)l, leading to a
severe recession.

Incidentally, bank nationalization  is something that Britain seems to
be doing (for this one bank, at least),  Not sure if that is helping
matters in Britain.

LONDON, Sept 28 (Reuters) - Britain's government will nationalise
troubled mortgage lender Bradford & Bingley and is discussing the sale
of its savings book and branches, people familiar with the matter
said.