Reflections 10 years after the GFC
It is timely 10 years after the global financial crisis to reflect on what has been learnt and what has changed. Regrettably little, according to recent reports and expert opinion. Capital requirements for banks may have been increased somewhat, lending criteria reigned in a little and in some cases executive bonus provisions have been curtailed.
But overall the financial system operates as before, leveraging off ever increasing piles of debt as banks continue to make record profits.
Let us not forget that this was a financial crisis, not an economic crisis. The economic devastation caused through the collapse of businesses, consequent unemployment, loss of savings and widespread austerity measures implemented by most western governments – this was a consequence of a financial system out of control.
It is now more important that ever to understand how money is created and functions in our globalised world. Leaving it to bankers and financial elites, mainstream economics commentators and financially illiterate politicians is not a socially responsible option.
Positive Money is a UK based not-for-profit research and campaigning organisation. They have prepared a number of informative videos on money which can be viewed below: