Financialised Capitalism: Crisis and Financial Expropriation
AbstractThe current crisis is an outcome of the financialisation of contemporary capitalism. It arose in the USA because of the enormous expansion of mortgage lending, including to the poorest layers of the working class. It became general because of the trading of debt by financial institutions. These phenomena are integral to financialisation. During the last three decades large enterprises have turned to open markets to obtain finance, forcing banks to seek alternative sources of profit. One avenue has been provision of financial services to individual workers. This trend has been facilitated by the retreat of public provision from housing, pensions, education, and so on. A further avenue has been to adopt investment banking practices in open financial markets. The extraction of financial profits directly out of personal income constitutes financial expropriation. Combined with investment banking, it has catalysed the current gigantic crisis. More broadly, financialisation has sustained the emergence of new layers of rentiers, defined primarily through their relation to the financial system rather than ownership of loanable capital. Finally, financialisation has posed important questions regarding finance capital and imperialism.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research on Money and Finance in its series Discussion Papers with number 01.
Date of creation: 2009
Date of revision:
Contact details of provider:
Web page: http://www.researchonmoneyandfinance.org/
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.