Larry was on form, as usual, today, arguing three myths have sustained the continuation of the financial crisis for five years now:
The reason the crisis has been so long comes down to three myths.
The Anglo-Saxon myth is that big finance is a force for good, rather than rent-seeking and corrupt.
The German myth is you can solve a problem of demand deficiency with belt tightening and export growth.
The chances of this happening are slim. Because there is a third myth – that there was not much wrong with the global economy in 2007.
Of the last he says:
But the old model was financially flawed as it operated with high levels of debt, socially flawed in that the spoils of growth were captured by a small elite, and environmentally flawed in that all that mattered was ever-higher levels of growth. It is possible to move on, but only when it is recognised that the genie will not go back into the bottle.