Thursday, September 25, 2008

 

They used to call it dystopia.



Science fiction readers may recall a book from 1952,
"The Space Merchants" by Frederick Pohl and Cyril M. Kornbluth. The book provided a humorous view of the future, where political governance and national boundaries are replaced by the interests of giant monopolistic capitalist entities.



Fast forward to 2008. The following is from The Albuquerque Journal, business section, Wednesday, September 24.


"Ups and Downs

A look at some factors playing into the changes in financial markets

...BIG VS. SMALL

The government's recent interventions are separating companies into too big to fail, and others too small to bother rescuing. The big have the potential to get even stronger because the perception that the government stands behind their debts can make it possible for them to borrow money more cheaply.

"If there is a group of financial institutions in the United States that are immortal and others -- thousands and thousands -- are too small to save, then the immortals clearly have a leg up," said Kenneth A. Guenther, former president of Independent Community Bankers of America.

The result is likely to be a shakeout leading to greater concentration of power, less competition and higher prices, some industry watchers say...."


Read "The Space Merchants" again. It may not seem so funny anymore.

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