Art Finance. Statement 3

 A healthy development of financial markets makes of capitalism a powerful machine of wealth creation…..

….. at a price. The price of financial crisis like the two reported extensively by Donald Mckenzie: 1987 and the LTCM one.

That capitalism isa machine f wealth creation was clearly ackowledge even by Marx and some years ago was academacally reacknowledged by Baumol. It is however such a common thought that it is not discussed often.

Discussions about the evils of globalization do not actually have in mind any alternative to the capitalism system.

As a machine of wealth creariom capitalism is empowered by the existance of a financial sector as the last twenty years have witnessed.

Howerver finacial crisis are unavoidable for a diversity of reasons. We can learn to minimize its deadly consequences but we cannot be sure that financial matters will never go wrong.

Financial arrangements do help  the smmoth running of the economy, but when fianacial assets are used for speculative purposes they become a danger in themselves.

Since speculation is just another name for the spirit of capitalism, it follows that there is not the possibility of  the latter without the dangers of the former.

Well, capitalism deals with life and death just as Art does always manouvering between the life enhancing aspects of it and its deadly powers.