Economic crisis continuing

This video is about the Wall Street crash in 1929.

The economic crisis of 2008 continues.

See: Europe gripped by fear of global crash.

And Panic sell-off on Wall Street.

And Unemployment and poverty grip New York State.

And The American “financial tsunami” hits Asia.

And Capitalist crash drives HBOS into the arms of Lloyds TSB; see also here.

Britain: MASSIVE JOBLESS RISE – greatest since 1992.

Mass sacking of British bank workers: here. And here.

From British daily The Guardian:

A psychological diagnosis of the banking crisis

* Oliver James

* Thursday September 18 2008

Shares in the troubled bank HBOS are up and down like a manic-depressive. It is tempting to assume that the brokers doing the buying and selling are every bit as febrile. Indeed, a study of 26 successful New York brokers from 2000 does suggest they are distinctly flaky.

They had high levels of depersonalisation (feeling detached from one’s surroundings) and a staggering two-thirds were depressed. There were similarly high levels of anxiety and sleeplessness. The more they earned, the more likely they were to have these problems. Twice daily, they consumed both alcohol and an illegal substance (mostly cocaine). For relaxation, they chose solitary pursuits: jogging, masturbation and fishing were common.

But for all their Affluenza-driven compulsions and misery, it would be wrong to characterise brokers’ turbulent share-dealing as evidence of mental instability. In fact, it is a wholly rational response to the way they are incentivised. In the deregulated shambles of our financial services industry, their bosses motivate them with extremely short-term rewards. If the only way to succeed in the system is to slap a bet on HBOS shares falling, then it is rational to do so.

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