This blog post is in response to John Cassidy's article from 8 October 2013 in the New Yorker, found here.
Why America Doesn't Need a Stock-Market Crash:
John Cassidy makes some good points in this article, but his conclusion is wrong. He suggests that a major market drop would convince Congress to get its act together, and he's right, it would. And that's precisely why we don't want this to happen - the stock-market already wields too much power over Congress, witnessed by the fact that banksters still infest the back alleys, boardrooms, and other places of ill repute on Wall Street. If the market had no power over government, things like the Great Recession, a tool created to crash the middle-class and damage the machine that threatened to place the upper-middle uncomfortably close - within arm's reach - to the least wealthy of the ultrawealthy, couldn't happen.
Oh, sure, a lot of people lost a lot of money in the Great Recession, but here's how that works: If I have $1000 and you have $100000 and we each lose 90% of our wealth, I'm down to $100 while you still have $10000. Now, I have to work for whatever shit wage you want to pay, buy your shit products whose prices didn't drop when the F(ing) Bomb went off in the market, and you profit from...well...every part of the crash; you still sell just as much crap at the same prices, and I have to take a second job - also at shit wages - to make ends meet, churning out more crap products...and the great market Ouroboros swallows its tail and the cycle continues like a giant printing press minting specie and banknotes for the market whose power is increased because of the crash.
A crash is good for the market and increases power over government because, ultimately, the government has to go to the markets with hat in hand and beg a loan to pay itself.
Some of these financial guys are standing too close to the elms to see the forest. Hand the market a crash and you hand it the keys to the Treasury, and...oh, hell...do I really need to explain this any further?
I didn't think so.