Putting Humpty Dumpty Back Together Again: Financialisation and the Management of the Subprime Mortgage Crisis

The subprime mortgage debacle in the USA and the subsequent global credit crunch provoked a wide range of crisis management responses in different national settings. Such interventions are typically figured as the sovereign state coming to the rescue of the markets and the banks. In contrast, and offering a critical analysis of the character and content of the principal interventions of authorities in the heartland of the crisis in the USA and the UK from Autumn 2007 through to 2009, we argue that these responses served to reproduce financialisation tendencies present across the seemingly separable domains of state and market which contributed to producing the crisis in the first place. Understood as a process co-constituted through pervasive but contradictory developments in capital accumulation, the risk management practices of lenders and the disciplining of borrowers, we show how, far from being seriously curtailed by crisis management, the financialisation of socio-economic life was actually buttressed during the very period in which its fragilities were most sharply exposed. In short, the management of the subprime crisis is a story akin to that of trying to put Humpty Dumpty back together again.     

Adapting the environmental impact statement process to inform decision makers

The environmental impact statement (EIS) process is central to the assessment of environmentally significant actions. Yet decisions about what matters in the environment and what gets studied as part of an EIS are based on values that are largely implicit and come primarily from technical experts. In this article we propose using the techniques of decision analysis (DA) to articulate values explicitly and make the EIS process more effective as an aid to decisionmakers in developing defensible environmental policies. We identify five major sources of problems with the current EIS approach, propose a new environmental decision process that incorporates DA in the EIS framework, and consider the merits, problems, and feasibility of implementing the suggested policy improvements.