So, this rather puts Naomi Klein\’s thesis to the sword, doesn\’t it?
The fulminating text is the clearest evidence yet of the mounting drive for an EU-wide "super regulator", which would reduce Britain\’s Financial Services Authority to a regional branch – and pose a grave threat to the City of London.
European critics of Anglo-Saxon "casino" capitalism have seized on the credit debacle as a chance to clip the wings of the City and to extend EU jurisdiction deeper into financial affairs – a jealously-guarded domain of EU member states. They know that Britain is unusually vulnerable to pressure after the Northern Rock affair, which exposed grievous shortcomings in the UK regulatory structure.
She of course said that "neo-liberalism" used crises to extend its reach. Whereas of course the opposite, as shown here, is the truth, that each crisis, whether imagined or not, is used as a pretext for extending the power of The State and the politicians who direct it.
But perhaps the more important point is that the socialist luminaries who are proposing this "super regulator" don\’t understand markets at all. OK; perhaps they will get sufficient power to create such a regulatory body. Perhaps they will get rid of the vicious Anglo-Saxon style financial markets from the EU. But they won\’t get rid of said markets. They\’ll simply move.
As, indeed, they did from New York when controls were imposed there in the 50s and 60s.