Глобалната финансова криза 2007-2010 и бъдещето на капитализма

The Global Financial Crises of 2007–2010 and the future of capitalism

Manuchehr Shahrokhi - California State University-Fresno, USA

21 October 2011 (23 pages)

Keywords: Global Financial Crisis; Global recession; Capitalism; Global economy

Abstract:

This paper presents an analysis of the 2007-2010 Global Financial Crisis which started with the sub-prime crisis in the U.S. and became global very fast.

It argues that the financial system in the United States is a complex interlocking structure of markets, institutions and regulators.

The causes and culprits of the crisis, the misaligned incentives of participants and exogenous events such as the wars in Afghanistan and Iraq, precipitated failure in key markets: commodities, sub-prime housing, equities, and credit.

One of the strategic consequences of this crisis is that the US will lose its dominance in world power, the frequent crises and vulnerabilities of the Neoliberalism and examines the future of capitalism.

Of the alternatives to economic system, the capitalism is the most viable economic system. However, it must adopt real and efficient allocation of resources to maximize welfare of all parties and seriously address the income inequality.

It must reject crony capitalism, enact true financial regulation of institutions and markets, end corporate socialism and address the system’s structural deficiencies.

Contents:

1. Introduction

2. The chronology and causes of the stage I crisis

3. The global response

4. The future of capitalism

5. Stage II financial crisis — sovereign debt (Етап II, финансовата криза - държавен дълг)

6. Conclusions