chapter  5
20 Pages

The Global Capitalist Crisis and the European Union, with Focus on Greece

In the run up to the U.S. Presidential elections in the Fall of 2008, the “shocking” news broke that the country’s “housing bubble” had burst, and that the economy had gone into a recession. In short order, the revelations of what had been playing out on Wall Street and the magnitude of their market manipulations led economists and politicians to sound the alarm bells of dire economic crisis. Clearly, this situation demanded immediate political attention, and it got it. Under President George W. Bush-in public consultation with presidential candidates Barack Obama and John McCain, and the leadership of both parties-the economic and political elite secured the Troubled Asset Relief Program (TARP). Led by the likes of Treasury Secretary Henry Paulson (formerly the CEO of Goldman Sachs) and Federal Reserve Chairman Ben Bernanke, those in command swiftly and successfully “socialized” the costs of Wall Street’s reckless behavior, invoking the mantra of “too big to fail” and making sure that none of the perpetrators would be held accountable. This scenario not only opened the door of the White House to Barack Obama, but it set into motion-or at least accelerated-global capitalist crisis and class war that hadn’t been seen at this level in the Western world for a very long time.