‘Casino capitalism’ and the financial crisis

During the current financial crisis it has become commonplace to equate international finance with casinos (Moore 2007, SocialistWorld.net 2008) and the activities of brokers with gamblers or bookmakers (Kay 2009). In the UK, the Guardian has issued warnings about ‘casino capitalism’ since 2006. Analysts as varied and influential as Will Hutton, Polly Toynbee, Howard Davies and Robert Peston have all used the term.

It is also being used in the United States: at a congressional hearing discussing the fate of AIG, for example, California Congresswoman Jackie Speier referred to their Mayfair business as ‘the casino in London’ (Koeing 2008). The Transnational Institute and Institute for Policy studies’ website on the crisis is called simply ‘Casino Crash’ (http://casinocrash.org/), and Brazilian President Lula has described the ‘irresponsibility of speculators who have transformed the world into a gigantic casino’ (Pasricha 2008).