86. Zombie Oligarchs « The Baseline Scenario
May 2, 2009 § Leave a comment
We are still looking at keeping banks as they were, with massive wealth transfer upward mildly attentuated.
We’re looking at a near term dominated by the existing economic power structure. The remaining big banks (in the US) and big banks/corporates (elsewhere) are made invincible by campaign contributions, political connections, and everyone’s reasonable fear of a great depression. It will be hard for outsiders to challenge that structure effectively – either as new companies or with new ideas. But you won’t see a great deal of innovation, investment, and growth coming from these survivors.
How do we eventually escape the grip of zombie oligarchs? We’ll have a fair amount of time to think that through.
By Simon Johnson