(Waving the form of the pattern distortion to maintain the differential “on demand.”)
Ten years ago we experienced a global financial crisis.
Having a risk dimension the size of the 1929 crash and the Great Depression, the crisis in 2008 derived from what capitalists described as modern financial products designed to make markets more efficient.
Depression-era regulations were gradually discarded. To globalize, capital must be free to flow and the result was the development of “risk-transfer products.”
The difference, rather than making financial markets more safe and sound, was to cause a massive consolidation of equity. Using risk-transfer vehicles, capitalists confiscated private property to be sold back at a profit. Homes, for example, far exceed equity values in 2008, which were consolidated at “underwater” prices “on demand.”
A prominent feature of the risk-transfer product (which “the makers” make) has made all the difference. Along with the ownership of equity interest (still driving equity markets to record levels), what also tranferred was the risk associated with catastrophic losses (the risk dimension of the K-wave, for example, which has the natural force of shaping the policy space).
Capitalism survived because the Fed was there to bail it out — to render it safe and sound.
Operating in a too-big-to-fail dimension is not free-market economics. It is a massive consolidation of power that is falsely described by capitalists as being the objective reality of our natural identity (which “the makers” naturally make).
(See other articles by griffithlighton on the application of Objectivist philosophy, the management of risk dimension, and maintenance of a catastrophic-risk proportion using the legitimate utility of on-demand attributes.)