The use of various Economic and Business journals are proving extremely useful when gaining new perspectives and ideas on the causes of the 2008 Financial crises.
In particular The Economist, with its September 7th 2013 article on The origins of the financial crises, 'Crash Course'.
The diagrams depicted in the article give way to visual interpretation of the crises, which I feel is useful when gaining greater knowledge in the subject.
The diagram to the left suggest the banks had significant influence on their country's economic performance, a result of their assets growing significantly in value. Hence, their power and influence having continual growth, conveying Marx ideology off the powerful Capitalists essentially controlling the workers, through their high influence on their performance.
In particular The Economist, with its September 7th 2013 article on The origins of the financial crises, 'Crash Course'.
The diagrams depicted in the article give way to visual interpretation of the crises, which I feel is useful when gaining greater knowledge in the subject.
The diagram to the left suggest the banks had significant influence on their country's economic performance, a result of their assets growing significantly in value. Hence, their power and influence having continual growth, conveying Marx ideology off the powerful Capitalists essentially controlling the workers, through their high influence on their performance.
Relevant points
"The long period of economic and price stability over which they presided encouraged risk-taking"
This assumption on the cause of the crises bears relevance to Marks' ideology, due to the "risk-taking" signifying the powerful capitalists actions taking place regardless of their effect on the workers. Also, it could be argued that the free market mechanism has promoted risk taking, through the ongoing profit incentives of companies to make money, to the extent were costly consequences take place.
The diagram to the right depicts the ill founded optimism of banks; as you can see in the diagram a surge of optimism took place in 2007 which ironically was when the Financial crises began to take motion. Hence this would suggests the Banks essentially were led into a false sense of security over the near future, which resulted in reckless, unstable, behavior. However, from a Marxism perspective one could argue that the almighty financial sector anticipated a Bust, to in turn make money on the depreciating world stock markets.
"The long period of economic and price stability over which they presided encouraged risk-taking"
This assumption on the cause of the crises bears relevance to Marks' ideology, due to the "risk-taking" signifying the powerful capitalists actions taking place regardless of their effect on the workers. Also, it could be argued that the free market mechanism has promoted risk taking, through the ongoing profit incentives of companies to make money, to the extent were costly consequences take place.
The diagram to the right depicts the ill founded optimism of banks; as you can see in the diagram a surge of optimism took place in 2007 which ironically was when the Financial crises began to take motion. Hence this would suggests the Banks essentially were led into a false sense of security over the near future, which resulted in reckless, unstable, behavior. However, from a Marxism perspective one could argue that the almighty financial sector anticipated a Bust, to in turn make money on the depreciating world stock markets.