Libya, who lost and who gained?

The civil war in Libya went on longer than expected, but the fall of Tripoli came faster than was forecast. As in Kabul in 2001 and Baghdad in 2003, there was no last-ditch stand by the defeated regime, whose supporters appear to have melted away once they saw that defeat was inevitable.

While it is clear Colonel Muammar Gaddafi has lost power, it is not certain who has gained it. The anti-regime militiamen that are now streaming into the capital were united by a common enemy, but not much else. The Transitional National Council (TNC) in Benghazi, already recognised by so many foreign states as the legitimate government of Libya, is of dubious legitimacy and authority.

Karl Marx was right ?

Karl Marx was right, it seems, in arguing that globalization, financial intermediation run amok, and redistribution of income and wealth from labor to capital could lead capitalism to self-destruct. So what can be done to prevent that outcome?.The massive volatility and sharp equity-price correction now hitting global financial markets signal that most advanced economies are on the brink of a double-dip recession. A financial and economic crisis caused by too much private-sector debt and leverage led to a massive re-leveraging of the public sector in order to prevent Great Depression 2.0. But the subsequent recovery has been anemic and sub-par in most advanced economies given painful deleveraging.

European Central Bank and the “Sovereign Raiders”

 

Coward politicians and irrational market behind the crisis

Psychology and not the news behind the sudden price declines…The ghost of Lehman’s back. Frightened by coward politicians, citizens vote for the one who promises the most and the market acts as  an irrational monster. As long as fear and greed  dominates over the economy, the economy will continue to decline.I call the market a monster because it is as unpredictable as ruthless. Nothing fundamental has really happened to justify the last days of sharp stock market collapse and turmoil in the global economy. To 90 percent, it is about psychology.