One of the central features of neoliberal globalization has been the growth of complex financial markets. These have included a vast expansion of credit markets, and the growth of derivatives trading in risk that has underpinned the expansion. In the last months, the squeeze on workers' incomes and a mild economic slowdown has caused a crisis in mortgage lending for housing. This in turn has expanded into wider turbulence in financial markets over the last month. The central banks in Canada and internationally have intervened massively to support liquidity for financial capital. This discussion will explain some of the features of these new structures of accumulation and credit, and some of the wider economic and political issues for social struggle in the coming period. By Greg Albo, Socialist Project activist and teacher of Political Economy at York University, Toronto.
Liquidity crisis; Global trading blocks; stability and asymmetry.
Market structures; borrowers-lenders.
Current crisis; development of complex credit; circulation of capital.
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