Lucrative Dealing in the Age of Austerity

Photo by Funk Dooby | CC BY 2.0


CounterPunchers
such as Michael Hudson and Rob Urie have long informed its readers about what goes on in the financial sectors of the US economy in particular and the global economy more generally.

Their writings are usefully complemented for me by valuable accounts of how banking insiders do their work, ranging from the more journalistic (Michael Lewis and Matt Taibbi come to mind) to the more scholarly.  Among the latter, Doug Henwood’s Wall Street: How It Works and for Whom (Verso Press, 1987), although published over two decades ago is still pertinent, especially in view of the Senate’s recent vote, with Trump’s support, to roll back some of the Dodd-Frank legal provisions regulating “too big to fail” banks– thereby of course increasing the likelihood taxpayers will be stiffed yet again in the event of another major banking collapse (deemed to be “inevitable” by Bill Gates).

I have just finished Tony Norfield’s The City: London and the Global Power of Finance (Verso Press, 2016).  Norfield was a banker for 20 years, so a lot of what this book conveys is first-hand knowledge.

If Henwood showed, among other things, why the 2008 crash was virtually inevitable, Norwood’s book indicates, likewise among other things, why another such financial disaster will be just as unavoidable, unless significant changes are made, not just to the financial sector, but to the prevailing system of capitalist accumulation in its…
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