Surviving Capitalism (Not) : IMF Calls for Huge New Round of Bank Bailouts

We’ve lived so long under the spell of hierarchy—from god-kings to feudal lords to party bosses—that only recently have we awakened to see not only that “regular” citizens have the capacity for self-governance, but that without their engagement our huge global crises cannot be addressed. The changes needed for human society simply to survive, let alone thrive, are so profound that the only way we will move toward them is if we ourselves, regular citizens, feel meaningful ownership of solutions through direct engagement. Our problems are too big, interrelated, and pervasive to yield to directives from on high.
—Frances Moore Lappé, excerpt from Time for Progressives to Grow Up

Wednesday, October 6, 2010

IMF Calls for Huge New Round of Bank Bailouts

from Washington's Blog.

Turmoil in sovereign debt markets necessitating another round of bailouts?

This is amusing, given that it was the last round of bailouts which caused the sovereign debt crisis in the first place.

Specifically, the Bank for International Settlements – often described as a central bank for central banks (BIS) – slammed the failure of the Fed and other central banks to force companies to write off bad debts years ago.

BIS also warned that the Fed and other central banks were simply transferring risk from private banks to governments, which could lead to a sovereign debt crisis. That is what caused the sovereign debt crisis in the first place!

The blogger explores recent statements coming from financial institutions that suggest they will be looking for more bailouts. The financial crises appear to be increasing and it is bloggers like this who can help us understand what is happening.