“The Great Financial Crisis: Causes and Consequences,” (coauthored with Fred Magdoff, Foster listed first, New York: Monthly Review Press, 2009), 160 pp.
The bursting of the housing bubble and the ensuing financial debacle have left most people, including many economists and financial experts asking: Why did this happen? If they had been reading Monthly Review, and were familiar with such articles as “The Household Debt Bubble,” “The Explosion of Debt and Speculation,” and “The Financialization of Capitalism,” they would not have needed to ask. In their new book, The Great Financial Crisis: Causes and Consequences, Monthly Review editor John Bellamy Foster and long-time Monthly Review contributor, Fred Magdoff, update this analysis, exploring the whole course of what is now known as “the worst financial crisis since the Great Depression”: from the debt explosion and housing bubble to the subprime debacle and federal bailout. They argue that this latest financial crash, although greater than any since 1929, is itself a symptom of deeper problems connected to the stagnation of the “real” or productive economy of mature capitalism. Financial bubbles have become the chief means of countering stagnation, but these inevitably burst, bringing the underlying economic problems back to the surface. The only recourse of the system: new and bigger bubbles, leading, as they too pop, to still greater financial crises and worsening conditions of production—in what has now become a vicious cycle.
- Indian edition (English) published by Cornerstone Books, Kharagpur, 2009.
- Korean translation from Eulyoo Publishers.
- Czech language edition published by Grimmus, Czech Republic, 2009.
- Spanish translation, Fondo De Cultura Económico (Spain), 2009.
- Bangla translation by Farooque Chowdhury (Dhaka: Shahitya Prakash, 2011).
- Arabic translation by Ateyyah Kareem Al Zafiri (Afaq Educational Services Company, Kuwait City, Kuwait, 2013).
- Selected chapters appear in Kapitalizmin Finansal Krizi (Turkish), edited by Prof. Dr. Abdullah Ersoy (Ankara, Turkey: Imaj Publishing, 2011), 330pp.