George Magnus: Markets are reacting to a crisis of capitalism

George Magnus: Markets are reacting to a crisis of capitalism Financial markets have had a torrid summer on ‘breaking news’ about slowing global growth, fears over a new western economic contraction, and the unresolved bond market and banking crisis in the eurozone. But these sources of angst have triggered turbulence before, and will continue to do so. Our current economic predicament is not a temporary or traditional condition.

Put simply, the economic model that drove the long boom from the 1980s to 2008, has broken down. Considering the scale of the bust, and the system malfunctions in advanced economies that have been exposed, I would argue that the 2008/09 financial crisis has bequeathed a once-in-a-generation crisis of capitalism, the footprints of which can be found in widespread challenges to the political order, and not just in developed economies.
http://link.ft.com/r/19JYUU/VLG5YQ/OJS3XZ/B57RIR/C4K9YE/9A/h?a1=2011&a2=9&a3=12