Financial Implosion and Stagnation

Datos Bibliográficos

ID9197899
AutoresJohn Bellamy Foster (0000-0001-7418-3004), Fred Magdoff
Año2008
Volumen60
Número7
Páginas1
Fecha de publicación2008-12-01
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaMonthly Review (JOURNAL)
Identificadores de la revistaISSN: 0027-0520 • E-ISSN: 0027-0520
EditorialMonthly Review Foundation (PUBLISHER)
DOI10.14452/mr-060-07-2008-11_1
OpenAlexW2051304948
IdiomaEN
Citas recibidas15

"The first rule of central banking," economist James K. Galbraith wrote recently, is that "when the ship starts to sink, central bankers must bail like hell." In response to a financial crisis of a magnitude not seen since the Great Depression, the Federal Reserve and other central banks, backed by their treasury departments, have been "bailing like hell" for more than a year. Beginning in July 2007 when the collapse of two Bear Stearns hedge funds that had speculated heavily in mortgage-backed securities signaled the onset of a major credit crunch, the Federal Reserve Board and the U.S. Treasury Department have pulled out all the stops as finance has imploded. They have flooded the financial sector with hundreds of billions of dollars and have promised to pour in trillions more if necessary—operating on a scale and with an array of tools that is unprecedented.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website

Business · Economic history · Economics · Federal funds · Financial crisis · Financial system · Great Depression · Hedge fund · Keynesian economics · Monetary policy · Political science · Treasury · Banking stability, regulation, efficiency · Economic Theory and Policy · Finance · Global Financial Crisis and Policies · Law