I admit it, the past week has left me speechless. As I sat and read the news about how the last of the investment banks shuffled off into extinction (kinda; they’re just becoming regular old banks now), it did feel like I was sitting in front of my television again watching the Berlin Wall come down.
In this sense, the fall of Wall Street is for market fundamentalism what the fall of the Berlin Wall was for communism — it tells the world that this way of economic organization turns out not to be sustainable. In the end, everyone says, that model doesn’t work. This moment is a marker that the claims of financial market liberalization were bogus.
Only this time there doesn’t seem to be as much to celebrate.