Economic Ownership

Posted on March 23, 2008
Filed Under Society |

The economy is still in the process of head-long descent, I don’t know how many people have noticed this on a daily level yet - but certainly the cost of fuel and even bread is getting rather ridiculous. Unfortunately it is most likely only the start. The big financial news last week was of course the buy-out of Bear Stearns at $2 per share. So the sticks are falling - and in an attempt to shore this all up, the Central Banks of the world are talking about the mass buyout of mortgage backed credit:

Central banks on both sides of the Atlantic are actively engaged in discussions about the feasibility of mass purchases of mortgage-backed securities as a possible solution to the credit crisis.

Such a move would involve the use of public funds to shore up the market in a key financial instrument and restore confidence by ending the current vicious circle of forced sales, falling prices and weakening balance sheets.

The conversations, part of a broader exchange as to possible future steps in battling financial turmoil, are at an early stage. However, the fact that such a move is being discussed at all indicates the depth of concern that exists over the health of the banking system.

Central Banks float rescue ideas

I find this interesting because it raises the question of economy ‘ownership’ in very specific ways. To me it’s not just about the governments trying to ’save’ the economy - but attempting to take ownership over something which is essential to their survival. Of course I don’t mean ownership in the traditional sense, rather - as a metaphor - it’s like regulating guns so you can ensure they are never pointed at you. Except the economy is a beast that cannot be controlled, it can only be held back until eventually the restraints break.

I don’t know if there is a historical precedent for this - most likely not seeing as the economy is on a totally different scale to at any previous time.

At any rate, I consider that question largely irrelevant. It is a question asked because our gaze is focused in the wrong direction; we ask what can we do to save the economy. But perhaps it isn’t the disaster we believe, perhaps it marks the passing of an age. Perhaps our attachment to materialism and profit have driven our perspective into a fragmentary and isolated dead-end. Many people now-a-days are materially wealthy - especially compared to 150 years ago - but how many people are really satisfied or happy?

Perhaps what we need as a culture is a dramatic shift in perspective…