What is it about?
The Great Recession of 2007-9 was a wake-up call. Key world political leaders stood with ashen white, scared faces visible on TV cameras in October 2008, as the financial crisis threatened not only their political tenure but indeed the very system that enabled their rise to power. It became abundantly clear that the puppet strings of political-economic, even cultural, power are in the hands of Finanzkapital. This article explains how these puppet strings are pulled and manipulated.
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Why is it important?
It is deeply distressing to note that policymakers and researchers, particularly mainline economists, have feigned a deliberate amnesia to forget the manipulative role that reckless, unstoppable financialization plays in controlling our lives, in every which way. It is articles like this one, and a few other insightful articles and books from critical researchers and investigative reporters that peek behind the smoke-and-mirror curtain of the Finanzkapital Wizard of Oz.
Perspectives
It is astonishing that several years after the Finanzkapital-induced 2007-2009 Great Recession, there has been practically no fundamental questioning either of the politico-economic system or of the theoretical perversions that cause such crises. Sure, there are selected films and writings that are critical, but the vast enterprises -- of media and academia -- have really focused on sweeping the issues of Finanzkapital under the rug. A notable exception is the 2015-16 Bernie Sanders presidential campaign, which does point a strong accusatory finger at the Finanzkapital behemoth.
Dr Nikhilesh Dholakia
University of Rhode Island
Read the Original
This page is a summary of: Finanzkapital in the twenty‐first century, Critical Perspectives on International Business, February 2011, Emerald,
DOI: 10.1108/17422041111103859.
You can read the full text:
Resources
Inequality in USA - Mother Jones article in 2011
Things have not gotten better (and in many cases have got worse) since the magazine 'Mother Jones' published these telling charts on the tremendous inequality in USA, where the top dogs of Finanzkapital win out at the expense of everyone else.
So, why are Americans so complacent, about the staggering inequality?
Dan Ariely and a colleague did a fascinating study of actual vs. perceived inequality in America; and actual vs. what Americans think should be an ideal income distribution. Here is a video someone has made to make the Ariely's data and findings very vivid. See also: http://www.theatlantic.com/business/archive/2012/08/americans-want-to-live-in-a-much-more-equal-country-they-just-dont-realize-it/260639/
Change requires radical innovative thinking
The ideas and impetus for change -- out of the neoliberal-consumerist-financialized predicament we are in, and toward a new inclusive and equal and democratically participative future -- are going to come from innovative, radical thinking collaborative groups such as this one.
Book on Financialization by Max Haiven
Canadian scholar Max Haiven has written a superb book on "Cultures of Financialization", with the very apt subtitle "Fictitious Capital in Popular Culture and Everyday Life". Dr. Haiven elaborates on the pervasive and corrosive impact of financialization of day-to-day life, and its grudging love-hate celebration in popular culture.
Follow Prof. Leo Panitch for great insights into financialization and neoliberalism
Some of the best analytical and critical insights into the links between Finanzkapital and neolilberalism can be found in the extensive body of work by Professor Leo Panitch of York University, and many of his global associates,
Interview with Leo Panitch, on "Making of Global Capitalism"
Professor Leo Panitch lays bare, in simple terms, the connections amongst capitalism, imperialism, financialization, geopolitics, and crises.
Leo Panitch: Seeking Systemic Alternatives to Casino Capitalism
Nikhilesh Dholakia, author of this article and continuing with his explorations on Finanzkapital, sides with the position that the factors leading to devastating asset bubbles and glaring inequalities are systemic. Insights from sites such as these are essential for understanding the systemic nature of finance-driven capitalism shaping of our world.
Inequality: In Slavery, In Capitalism in general, and In the Current Era of Finanzkapital
Even the general business reader, who is generally conservative, is now waking up to the massive inequality that goes hand in hand with financialization and Finanzkapital.
NPR broadcast: Audio program on "Capital in the 21st Century" by Thomas Picketty
... okay, not a video, but a great audio program...!!
Nobel Laureate Joseph Stiglitz on Inequality
The Guardian (UK) reviews "The Price of Inequality" by Stiglitz
Gerald Davis & Suntae Kim, Univ of Michigan (Ross School) write about galloping financialization
A Download button at this link leads you to a typescript copy of this paper.
Thomas Piketty: Quite a coincidence in the title, eh?
"Capital in the Twenty-First Century" by Thomas Piketty has taken economic, political, academic, business by storm. The English edition of the original 2013 French book was published in 2014. No, Piketty does not seem to have read or referenced my paper "Finanzkapital in the Twenty-First Century"... but it does indicate the prescient nature of my 2011 work. Read both, to get a good overall view of the role of financialized capital in the contemporary world.
Thomas Piketty: Review by Lawrence Summers
The far-reaching impact of Piketty can be felt in this review by Lawrence Summers - a prominent economist and policymaker who is generally regarded as close to Wall Street and at best a Centrist (if not a bit to the right of center). While Summers has some issues with Piketty, overall he agrees a lot with Piketty. As for my CPOIB paper, if Summers were to read it, I think he would come out with critical, attacking guns ablaze.
Thomas Piketty: Review in New Yorker
This review is in a popular style, accessible to all. Provides a backdrop of Piketty's youth.
Thomas Piketty: Review by Paul Krugman
Unlike Summers, Krugman is regarded as being left on the spectrum. Hence a favorable review. What is more telling is that Summers also found the Piketty thesis and data fairly convincing.
Thomas Piketty: Here comes the centrist critique
Sort of expected from "Foreign Affairs" magazine: "Yeah, Piketty makes some good points but hey... don't rock the boat of global capitalism".
Thomas Piketty: View from the neo-Austrian Free-Market Right
Excerpts: "Expect to hear more and more about wealth taxes… This is all complete nonsense. Economic growth is produced when a society saves money and invests the savings wisely… Government is capable neither of saving nor investing, much less investing wisely. [Like] Keynes’s 'General Theory'… Piketty’s book serves the … same short-sighted, destructive policies. If the Obama White House, the IMF, and people like Piketty would just let the economy alone, it could recover. "
Thomas Piketty: Strange Review by James Galbraith
This one I found strange... While James Galbraith is usually quite "left" on most issues, here he seems to be channeling his more famous father. Like John Kenneth, James is critical of inequality but seems to think that good-natured democratic socialism or some form of conscious and responsible and caring capitalism will somehow do an end-run around the stranglehold of Finanzkapital.
Thomas Piketty: Review by Deirdre McCloskey
This is a very fine-honed review, but written in a bit of a smug and annoying style. We need to read it 2-3 times to really "get it."
Finanzkapital work in China: CAI Wan-huan
This China-based researcher appears to have written many papers on Finanzkapital, financialization, and the financial crisis.
Michael Lewis: Multiple books probing deep into innards of Finanzkapital
Biz-Econ Scholars may be asleep, but not sharp-observant journalists and authors. Michael Lewis has provided great insights into the inner workings of Finanzkapital.
Inequality: Nobel Laureate Joseph Stiglitz does not mince his words
Quick, go get this book and read it... very lucidly written.
Leo Panitch: On financialization and crises
Professor Leo Panitch and associates have studied the web of Finanzkapital carefully and systematically.
US Governmental Agency: This analyst sees dark, danger clouds - Bubbles, Crashes - ahead
This US federal government office, surprisingly, provides good insights into the dangers of financial bubbles.
Eugene Fama: Ain't no such thing as "bubbles"
Nobel laureate Eugene Fama believes that markets are informationally efficient and bubbles don't -- indeed they CANNOT -- exist...!!
Finanzkapital Tools: Share Buybacks
CBS-MarketWatch-WSJ columnist offers stinging critique of share buybacks, rising inequality, and dampening of innovation.
Sheila Bair: Lessons Learned? Not so sure...!!
Some data and quotes from Sheila Bair were invaluable in writing this paper. She hopes the Great Recession has taught us good lessons. Not sure if Finanzkapital is ready to "learn lessons"...!
Naked Capitalism blog: Philip Mirowski - 1
Critical economist and historian offers his views on how traditional economists have defended a failing economic system. This is part 1.
Naked Capitalism blog: Philip Mirowski - 2
Critical economist and historian offers his views on how traditional economists have defended a failing economic system. This is part 2.
Resource Files of N. Dholakia on Finanzkapital
This document contains web links to relevant columns, news items, articles, data, etc. on Finanzkapital. The collection represents this researcher's personal interests, but should be of value to other researchers interested in Finanzkapital.
2015 Too-Big-to-Fail Banks list
Finanzkapital (dis?)Honor Roll… 30 global “too-big-to-fail” banks list; developed by Finanzkapital "watchdog"... er, really... the tail-wagging poodle, the Financial Stability Board (FSB), created in 2009 after the Great Recession.
Center of Finanzkapital: NYC
No surprise… the center of Finanzkapital, of USA and the world, is the NYC metro area
Resource Files of N. Dholakia on Inequality
This document contains web links to opinions, columns, news items, articles, data, etc. on Inequality. The collection represents this researcher's personal interests, but should be of value to other researchers interested in Inequality.
[So-called] 'Sharing' Economy & Finanzkapital*1
The so-called 'sharing economy' seems to be emerging as the new playground for Finanzkapital.
ImpactStory Page: Nikhilesh Dholakia
The page provides a variety of perspectives and linkages on the author's research.
Finanzkapital... a slippery beast
Columnist Matt Levine explains on Bloomberg site the minutiae and intricate details of bank size measurement and regulation… Upshot? Finanzkapital is a slippery beast that cannot even be accurately sized-up, let alone be corralled…
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