The Gods that Failed
How blind faith in our markets has cost us our future
Larry Elliot & Dan Atkinson   |  January 29, 2009  

By Reg Nordman

Two financial writers in the UK have penned quite a scathing review of the present financial situation from the point of view of the UK. It gives you a good touch point to review the US and Canadian takes. Things are not that great all over, but they really make a case that the core to rebuilding our system is a strong and robust middle class. The banks need to be regulated and taken back to their basic functions. What they say we all can expect (no surprises):

• Taxes will rise
• Oil will drop then rise steadily (there is not enough)
• House prices will fall - worldwide
• The bad news continues with little guess how many years
• If food energy costs rise we risk a wage-price spiral
• A set of environmental disasters would be very hard to recover from at this time (e.g. Katrina)
• Geopolitics will be unstable (e.g. Russia will club others with their oil and gas riches)
• China could suffer the Olympic “curse” unless they spend even more on their infrastructure than they spent on Beijing
• State supervision and control of the financial sector will dramatically impact business behavior
• Large reforms of the banking sector
• Unions to survive will become more pro-trade

They make quite a statement about the need to use democracy to force accountability through all politics with the now present public ownership in some business sectors. This needs an increase in public attention to voting, etc.

To governments they suggest:

• Don’t spend what you don't have
• Increase taxes on the wealthy
• Reduce corporate welfare
• Increase the safety net for the poor
• Invest in education, technology and a forward-facing infrastructure

Check them out at http://www.thegodsthatfailed.co.uk/


The Gods that Failed
How blind faith in our markets has cost us our future
Larry Elliot & Dan Atkinson
2008
ISBN 978184792030