Zhang Monan: US Financial Capital "Moral" Credit Collapse

Goldman Sachs fraud is not a case. According to the Pulitzer prize winning news investigative website ProPublica information, many banks in Wall Street have helped to sell products designed for short selling for the benefit of those who bet.

The Goldman Sachs incident will not be so far. It may be just the tip of the iceberg of the Wall Street crisis.

If the economic crisis is a crisis of overproduction and the social products exceed the limited demand, then the financial crisis is the crisis of excess financial products.

In the past 20 years, fundamental changes have taken place in the world's economic and financial structure. The world economy has entered the era of financial capitalism. This is the core issue of understanding the current global economy and finance. It is also the background of the outbreak of the global financial crisis.

The biggest feature of American financial capitalism is financial capital liberalization and financial expansion.

The use of developed financial system in the United States has led to massive capital circulation and leverage amplification in the stock market, foreign exchange market, bond market, futures market and various financial derivatives markets.

According to preliminary statistics, if the value of all financial assets before the US crisis is calculated, the total amount of virtual assets will not exceed 400 trillion - 500 trillion US dollars.

The US GDP has only 12 trillion to 14 trillion dollars.

According to the relationship between flow and stock, the assets value of US $12 trillion - 14 trillion national income is 400 trillion - 500 trillion US dollars.

The US economy has been highly virtualized.

Wall Street is the epitome of American financial capitalism, and Wall Street helps the United States to create a powerful financial empire.

Wall Street provides a steady stream of capital for the economic development of the United States and realizes the optimal allocation of social resources. Wall Street itself has grown into the center of the global financial system along with the development of American economy.

Wall Street decides all the operational ecology of the operation mechanism and pricing power of OTC financial derivatives, while Wall Street has taken huge wealth from the whole world through the malformed distribution mechanism, resulting in unfair distribution of huge wealth.

At present, people are willing to regard Goldman Sachs fraud as a landmark event in the US financial supervision.

However, in the absence of any change in the nature of domestic financial capitalism, whose regulation is regulation?

Who is supervising?

A passage from American writer Ferdinand Kurnberger seems to be able to express all this very well: the American philosophy and the spirit of capitalism are "scraping oil from cattle and scraping money from people."

In any period of history, whenever possible, there will be cruel and merciless profit making behavior with ethical disregard. "In the period of capitalism's pition from industrial capital to financial capital development, this disregard of ethics, intrigues, intrigues and ruthlessness has penetrated every corner of the financial field and will never disappear."