Posted on May 3, 2012

One of the reasons for this severe recession, i.e., near depression, is capitalism's intrinsic and impatient craving to institute the point that is perpetuated by 'greed.'

Marx always thought that a capitalist would extract the last drop of blood from workers that would ensue Marx's "dictatorship of the bourgeoisie." It was to be run by the wealthy classes purely for their own benefit, and should inevitably produce internal tensions that would lead to its self-destruction and replacement by a new system "dictatorship of the proletariat." Unfortunately for Marx the "dictatorship of the bourgeoisie" caught in spiral of greed has used its full potential for higher returns on its capital, in turn they have lost most of it but bequeathed one gift i.e. cheaper but available housing.

In an effort to provide 'homeless people' homes the banks and institutions created derivative instruments that facilitated 'No Income No Job or Asset (NINJA)' mortgages, that in turn have created 'peopleless homes.'

For me it is the strength and not weakness of capitalism to create schemes, even to the point of self annihilation to provide housing and hope to those who had no jobs no income. This is how Adam Smith predicted that invisible hand of greed is going to deviate from mean, the stories of boom and bust or tulips are stories of a system that gets ahead of its own recuperativeability; self-driven by greed, the system's creative destruction allows it to come back to mean. Enforced Egalitarianism that promises level playing field in an economic system leads to mass non productivity and a deceleration that is far more unsympathetic.