Host Per Fagereng interviews economist Richard Wolff, author of the book "Occupy the Economy: Challenging Capitalism" about the LIBOR scandal and the European economic crisis.
Wolff had this statement about the LIBOR scandal: "The long-standing, mutual assistance relationship between global bankers and regulators has been exposed for serving their interests at the expense of the world economy. Such exposures happen when extreme economic crises such as today's provoke searches for scapegoats. Punishing big banks and regulators leaves intact the basic economic system that created the incentives and provided the rewards for what they did. The real issue is the need for system change.
On the European economic crisis, Wolff said: "Global capitalism is a system in deep crisis. Beginning in the U.S., it was worse there in 2008 and 2009 than it was in Europe. Then, partly because U.S. policies failed to end the crisis, global markets spread it to Europe and beyond in 2010 and 2011. 'Austerity' policies in Europe worsened its crisis that now, via global markets, returns to further depress the weakened U.S. economy. Global capitalism, a broken, dysfunctional system, persists because ideological blinders refuse to question let alone change it."
Richard Wolff is a Professor of Economics Emeritus, University of Massachusetts, Amherst, and currently a visiting professor in the Graduate Program for International Affairs at the New School University in New York City. Video of his talk "Capitalism Hits the Fan" is available at: http://www.
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