In part two of our conversation regarding the Canadian political fallout and the global economic crisis, Leo Panitch offers his analysis of the bailout and stimulus packages that countries are relying on. He offers that all this may not be enough if the banks are not forced to lend. Lending is not coming easily to the world’s banks, now that their method of passing risk onto others, through securities, has seized up. This is the reason why Leo believes that governments need to intervene and demand control in return for their investments, in order to influence the lending policies of the banks.
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