Fed Papers Show Breadth of Emergency Measures
"Even bedrock corporations like Caterpillar, General Electric, Harley Davidson, McDonald's, Verizon and Toyota were forced to turn to the Fed program that supported the market for the short-term i.o.u.'s that corporations use. During the worst moments of the crisis, in the fall of 2008, even creditworthy corporate borrowers found that this source of financing had dried up."
I think one could argue that this shows that the entire economy was virtually nationalized during this period.
I would further argue there are "deep lessons" to be found here.
1) Despite the integration of state and private enterprise over the however-many years, private enterprise still relies on financial markets and these markets are inherently unstable.
2) The state will intervene whenever markets experience crisis.
Question: Does this mean that capitalist society has only the illusion of instability and that it only uses its crises against the working class?
My Answer: No. Capitalists certainly do use the crisis against the working class, capitalist function on crisis which work as a "whip hand" to increase exploitation and destroy any "reforms" favoring the working class or threatening capitalist domination. That is one important tendency BUT it is not the only tendency. Capitalists certainly "normalize crisis" but this process of normalization inherently produces the possibility of crises outside the (new) norm. When financial "outtages" become frequent, companies stop merely being part of any crisis stabilization process and will instead start to "game" the system. When the Fed needs to walk each week handing out money, the sincerity of those asking for the money will be different.
Basically, I can see right-now a world of "market churning" where state intervention and financial speculation rolls like a storm from country to country, quite likely being the largest "profit center" of the new economic regime.
What do you think?