Strange: Mad Money

Strange, S. 1998. Mad Money. Manchester University Press.

This is a wide ranging tale of financial markets gone wild. States no longer have the power, capabilities and/or will to control the forces of free flowing capital. The causes of this crisis, while being decisions made by actors, are generally seen as being deterministic. The solution to the problem requires swift and bold action.

Written after the SE Asian crisis of '97, this book contains much that should be considered in today's economic climate, and much that remains hyperbole.

The book begins by explaining why the author understands the current organization of the financial system to be "mad". One moment it is manic, the other it is depressed. The output of the system is, in effect, insane.

The themes of Casino Capitalism are explored: volatility; we're all "involuntary gamblers"; arose from 5 decisions that really weren't decisions.

Markets have outgrown the constraints of government. This is not the only problem that has become too large, complicated or forceful to move beyond the capacity of states to regulate (environment, technology, etc).

All areas of the economy move to the rhythm of finance. States have much less control over finance than they had previously. Financial concentration is increasingly a problematic reality. Excess leads to "moral contamination" (181). There are widening gaps (income gaps, gaps between large and small business, between large and small states).