David McNally, ‘From financial crisis to world slump: accumulation, financialization, and the global slowdown’, Marx and the Financial Crisis of 2008, December 2008
As the International Monetary Fund observed some months ago, we are living through “the largest financial crisis in the United States since the Great Depression.” But that was to understate things in two ways. First, the financial crisis is no longer largely about the US. It has gone global, rocking the UK, the Eurozone, Japan, and the so-called “emerging market economies.” A wave of devastating national and regional crises is just getting started, having already hit Iceland, Hungary, the Ukraine, and Pakistan. Secondly, this is no longer simply a financial crisis; a global economic slump is now sweeping through the so-called “real economy,” hammering the construction, auto and consumer goods sectors, and clobbering growth rates in China and India. Manufacturing output is sharply down in the US, Europe, Japan and China. The Detroit Three automakers, reeling from losses of $28.6 billion in the first half of this year, are teetering on the verge of collapse. World trade is in a stunning free fall.