UBS Economist: End of Capitalism?

( – promoted by undercovercalico)

CNBC interviewed Paul Donovan, senior international economist at UBS, who is out shilling for government bailouts like all the other bankers.  Here’s what he has to say:

The financial system is ceasing to function effectively. The government needs to step in to support the financial system, or else capitalism is over.

Perhaps more dire was his answer to a question about whether injecting all this money into the economy would have an inflationary impact:

What we’re concerned about at the moment is salvaging something…If, in two or three years time we get back to a more normal function, [then that will be a concern.]  For the next two or three years, deflation is the concern.


Deflation is really a codeword for Depression–for years stretching into the future.

The truth is that Capitalism is already over.  The thieves are just trying to extract the last ounce of your money before they’re run out of town completely.

Remember this:

The same people who were telling you two years ago that housing prices would always go up are now claiming that you must pay for their bailout to preserve your shot at the American Dream.

The same people who weren’t able to sucker you into buying stocks last week are now going to get the government to take your money away and hand it to them.

What are the people saying who have been warning you about the housing bust and the financial collapse?

Nouriel Roubini:

So soon enough the transformation the USA into the USSRA (United Socialist State Republic of America) will be complete: we have defeated the USSRR to create a communist economy in the most advanced free market economy in the world. And calling it socialism (even socialism for the rich, the well connected and Wall Street) is giving a bad name even to a failed experiment like socialism; this is more akin to the creation of a corporatist state (like the Italian fascism or the Germany Third Reich) where private sector interest are protected (gains privatized and losses socialized) where the government is taken over by corrupt and reckless private interests.

Ilargi at The Automatic Earth:

So what do you do when someone’s dying, and you don’t want anyone to know? You close the doors. Check. Prop up the corpse. Check. Photoshop. Check.

If this Martian idea gains favour, stocks will go through the roof of the roof of the roof. For a few days. Everyone who’s short out there, and there’s zillions of them, will have to cover, and still lose their shorts and shirts and socks and pants.

And when that is done, stocks will seek and find bottoms and gutters that you never even imagined existed. Nobody will buy anything anymore. And then they will come up with a way to make you pay for it all. Nah, they wouldn’t do that, would they?

That UBS banker is telling you just a little truth.  Capitalism is over.  The lie is that things will get better or at least not worse if you will hand more money to him and his co-conspirators who have raped humanity and the earth they live on over and over again.

Things are going to change for the worse.  That has already been determined.  The only question remaining is whether there will still be enough of a United States left to borrow yet more money from foreigners to put people to work WPA-style in projects that can rebuild an America left devastated by the ravages of capitalism from the levees of New Orleans to the rusted factories of Cleveland.

If you give in to the contemptibe and predictable “bipartisan consensus” ready to commit you and your children to trillions in debt for decades to come, then America’s future will be bleak indeed.  Say no now.  Take some pain, but pull together, and there is hope for a survivable future, maybe even one that is better in many ways.


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    • goinsouth on September 20, 2008 at 13:58

    We won’t miss you.

    And a word of wisdom from the past:

    Private capital tends to become concentrated in few hands, partly because of competition among the capitalists, and partly because technological development and the increasing division of labor encourage the formation of larger units of production at the expense of the smaller ones. The result of these developments is an oligarchy of private capital the enormous power of which cannot be effectively checked even by a democratically organized political society. This is true since the members of legislative bodies are selected by political parties, largely financed or otherwise influenced by private capitalists who, for all practical purposes, separate the electorate from the legislature. The consequence is that the representatives of the people do not in fact sufficiently protect the interests of the underprivileged sections of the population. Moreover, under existing conditions, private capitalists inevitably control, directly or indirectly, the main sources of information (press, radio, education). It is thus extremely difficult, and indeed in most cases quite impossible, for the individual citizen to come to objective conclusions and to make intelligent use of his political rights.

    Marx?  Lenin?  Lennon?  Nope.  Albert Einstein: Why Socialism?

  1. The government needs to step in to support the financial system, or else capitalism is over.

  2. …now a major player at UBS?  The conspired, planned collapse of the lesser classes within capitalism!

    • goinsouth on September 21, 2008 at 11:05

    Here’s one idea about how to register a protest against this outrageous bailout that’s more effective than sending cards and emails to Congressmen.

    The Toilet Paper Revolution

    • dkmich on September 21, 2008 at 12:22

    Where do we sign up?   If this is capitalism, it deserves to die.

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