a reevaluation of our values

Since the specter of the 1929 Great Depression shook the American economy with last October stock exchange crash, conscious consciences awakened with a new set of cards, of regulations to play. Real estate business, banking institutions, emblems of a former vivid and prosperous economy (General Motors’ shares reached the bar of less than $3 yesterday) that made shone brighter the? Dow Jones? index, collapsed announcing the imminent decline, for so long predicted, of an empire.

With the bailout, protestations rose on its beneficial effects. Steven Fraser, senior lecturer at the University of Pennsylvania voiced up on the Wall Street debacle.

Evolving in its comfortable financial sector, engine of its economy, America reposed nonchalantly for too long on the stability of its paper investments. Fortunately, October 2008 crash made America aware of its dependence on the hazards implicated to being subjected to the financial market, and its vulnerability. By opening their eyes, American minds, through Fraser’s allegations, realized the unbalance resulting from the preponderance of speculations over productive means. The unbalance between the financial and productive sectors.

According to Fraser, America doesn’t produce anymore. The crash revealed the weaknesses of the American system, of its economy. Against what he, himself calls the “paper wealth” that is to say the speculative wealth, he brings to the fore the necessity to re-industrialize the economy stressing the high technology and the environmental consciousness as determining factors to the equilibium, to the relegation of the financial sector to an inferior position. The industry culminates as the motor, and the finances only being a cog of the economic mechanism.

The notion of free market proper to the liberal ideology also was the fertile and propitiatory ground for the current crisis. On one hand, when it comes to deal with huge transactions, everybody has the freedom to invest massively at whatever cost. The “whatever cost” is an important element since in case of a vertiginous fall, the fearless investor will bounce on a protective net, the taxpayer fund called the bailout. In one word, everybody finances high spheres’ ambitions and misjudgments. And, on the other hand, at a lower scale, A, B or C are enabled to pay the coming mortgage for the same mistakes, who will bail them out? In a free market, one takes its own risks and supports the consequences!

When Fraser endorses the development of the high technology and the environmental products, he only aligns himself on existing favorable niches, doesn’t he? High technology has always been incentive to progress and a stimulus for the volume of sales as for eco-friendly concepts will draw the attention (trend or concern) of richer economies.

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