How do you lose £3.7 billion? Down the back of the sofa? Meet Jerome Kerviel. He lost £3.7 billion of
his employer’s money, Societe Generale, a French
bank. Is it actually a good argument for
capitalism that the whole world can be screwed up because of a solitary rogue
trader? Is the system really so precarious that one crook can send world
financial markets into freefall?
For years Socialist Appeal
and the International Marxist Tendency have been arguing that the world is an
increasingly unstable place, where war threatens on many fronts
and revolution and counter-revolution hang in the air. The bourgeois and the Labour
right wing basically argue that it’s all down to evil people and that nice
President Bush and the generals keep us all safe by attacking terrr’sts and
keeping the world safe for freedom and ‘mockracy.
Even before panic hit the financial markets
the UK press was determinedly ignoring the big victory of German train drivers
last week. The train drivers won an
11% pay increase! Yet the emergence of what amounts to a five party system shows
Germany is entering a period of increased political instability.
Everything now clearly indicates that the
advanced capitalist world is headed for recession. The only question is when
and how deep that recession will be. In fact Merrill Lynch says the US economy
is already in recession. And that’s bad news for all of us. Here Mick Brooks at
what is really going on in the world economy.
Panic! The world’s
stock markets had their sharpest fall since 9/11 on Monday 21 January. Stock markets have had their worst start in the UK since records began! The UK is the most dependent of all the big seven
economies on finance, property and professional services rather than
productive sectors like manufacturing and transport.. So this world
downturn will hit it hardest of all.