A cul­ture of mania: a psy­cho­an­a­lytic view of the incu­ba­tion of the 2008 credit cri­sis

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In his recent paper enti­tled A cul­ture of mania: a psy­cho­an­a­lytic view of the incu­ba­tion of the 2008 credit cri­sis ,  Pro­fes­sor Mark Stein devel­ops a the­o­ret­i­cal frame­work around the notion of a manic cul­ture, com­prised of four aspects: denial; omnipo­tence; tri­umphal­ism; and over-activ­ity.

A series of major rup­tures in cap­i­tal­ist economies were observed and noted by those in posi­tions of eco­nomic and polit­i­cal lead­er­ship in West­ern soci­eties,” he said. “These rup­tures caused con­sid­er­able anx­i­ety among these lead­ers, but rather than heed­ing the lessons, they responded by manic, omnipo­tent and tri­umphant attempts to prove the supe­ri­or­ity of their economies.”

All four of these of these manic qual­i­ties were appar­ent in the Aus­tralian trea­surer last week “The doom­say­ers have been proved to be com­pletely and absolutely wrong,” Mr Swan said  . Just as Aus­tralia faces a sig­nif­i­cant slow­ing of the Aus­tralian prop­erty bub­ble,  together with sig­nif­i­cant signs of trou­ble within all our trad­ing part­ners and a con­tin­u­ing Euro­pean debt cri­sis , the trea­surer stands resplen­dent  in tri­umphant denial .

About Craig Tindale

CEO in the software and technology industry qualifications economics and computer sciences well read on Minksy, Marx, Fisher , Schumpeter , Veber and dozens of of others
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