the Wall Street crash is a failure of the imagination

Yesterday was the 79th anniversary of Black Monday, and today is Black Tuesday, two important days in the 1929 crash on Wall Street. Just, y'know, as an observation.

"Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even." said Richard M. Salsman* about the crisis, according to the Wikipedia page. So there's that.

This is one of those classical "prisoner's dilemma" situations we find ourselves in frequently in our society. What this situation makes clear is that if everyone maintains trust in the collective illusion of the market, the market will keep stable. What the stock market crash really is, is something that us literature majors can tell you all about (see? We can be useful - even in a depression! Hire me! Hire me!). It's basically a wavering in suspension of disbelief. Everyone has suddenly realised that their money really is Monopoly money and are panicking. Like Wile E. Coyote going over the cliff, suddenly looking down like an idiot. Stock market crashes, in effect, are simply a colossal, systemic, collective failure of the human imagination. And bright ideas are what's going to get us out of it.**

Society is a consensus reality we choose to participate in. A story that we tell ourselves. But some parts of that story have a really bad plot, bad grammar and poor writing. We need to rewrite those parts of the story without anyone getting hurt. This is the time, in other words, to remember that all money is pretend money. The only thing we get to decide is what kind of game we're playing. Are we playing capitalism or socialism? Monopoly or Junta, so to speak?

In short, if everybody would just hold on to their damned assets and be cool, we would all be fine in a pretty short time, while the "real" economy and the market got back in synch. If we could also reimagine what the world economy is supposed to look like while we're at it, that would be a fantastic added bonus.

* * *

* BONUS TRACK:

But then, Richard M. Salsman's Wikipedia page indicates that he is an objectivist Austrian school eejit. Let me share with you, as a gift, the titles of some of his papers and books:

* "The False Profits of Antitrust", chapter in The Abolition of Antitrust

* “The Cause and Consequences of the Great Depression”:

- “Part 1: What Made the Roaring ’20s Roar”,
- “Part 2: Hoover’s Progressive Assault on Business”
- “Part 3: Roosevelt's Raw Deal”
- “Part 4: Freedom and Prosperity”, January, 2005, pp. 14–23.

* “Bankers as Scapegoats for Government-Created Banking Crises in U.S. History”

* “‘Corporate Environmentalism’ and Other Suicidal Tendencies”

* “Banking without the ‘Too-Big-to-Fail’ Doctrine”

* Breaking the Banks: Central Banking Problems and Free Banking Solutions

Remember, my friends, this is not the time for gloating or schadenfreude. This is a time for honest, serious, dedicated work.

No, I'm just kidding. This is the time for merciless mocking. And it's a good time to put these people out of a job. And also a good time for reading Keynes and Marx.

** Mandatory endorsement: And obviously, that's going to be easier with an imaginative, creative, flexible US president. Like, say, candidate Obama. An inflexible, uncreative, volatile, insecure president like McCain? Not so much.

Oddly moving fact: there are only 5 surviving veterans of WWI left in Britain. They're all older than 106. Strange how that historical catastrophe keeps afflicting the present, while the actual participants are going extinct.

boiling water with the lid off

I just finished William Gibson's latest novel, Spook Country. As always, Gibson describes big chunks of the times we live in better than anyone (in fact, I can't help thinking that he is literally the only author I've read who looks at some of the things he looks at) and its worth reading for those observations, as well as a well-plotted, easy read. The funny thing is, I recognized huge chunks of the plot from my internet reading. I kept thinking "oh yeah, that's that thing, and that's that news story run through a blender and cut up with this other story over here", etc.

Today, as I was googling my way across the blogosphere per usual, I happened to stumble across a link - in Jill's blog, though now I've lost the post itself - to a post on Gibson's blog just when he started blogging again after a lengthy hiatus. This was in October 2004, in the run-up to the re-election of the Dauphin. I recognised the story he told from the novel. Then I looked at the October archive and realised that I got all those stories and ideas mostly from links Gibson blogged. So I can tell you now that Spook Country came together for Gibson in October 2004. That month is a record of all the little shocks and perceptions and historical forces and traumas - in seriously minute detail - that at some point stewed together in Gibson's brain into what became Spook Country.

According to the early plot outline which Amazon.com has up on the book's page (quoting the blog), he started writing his novel in June 05. That's the boiling time for the novel, I guess. Gibson has several times called writing a novel at the same time as the blog "boiling water with the lid off", meaning it's something he has to stop doing in order to generate enough energy to write the novel. Looking at these links, I'm not so sure. I think instead the blog has become a record of, and an integral part of, the idea-generating stage of writing his novels. Maybe he couldn't write the book itself, but the ideas certainly came about at these exact times.

I can't help but think that blogs are just huge assets for the biographical writers of the future. Also, the blog is a lot of fun to read. I remember the following paragraph vividly. And as always, Gibson was right on the money:

One actually has to be something of a specialist, today, to even begin to grasp quite how fantastically, how baroquely and at once brutally fucked the situation of the United States has since been made to be.