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Friday 19 September 2008

The trouble with fairy-tales

 

Like most girls of her age, Ariane Sherine believed in romance. She thought she had only to find the right person to find perfect passion and happiness. Then, slowly and painfully, she discovered the truth...

Friday, 19 September 2008

I was 15, he was 16, and our romance began with a lie about a jumper. It was the shapeless beige jumper he was wearing on a trip out with friends, and I didn't like it at all. "I like your jumper," I told him. "Can I try it on?"

It came down to my knees, but as I had hoped, he forgot to ask me to return it before he left. I rang him for the first time the next day. "I accidentally went home in your jumper," I lied again. "But I don't mind meeting up if you want it back?"

"I'd like to meet up," he replied earnestly. I wondered if he really missed the jumper. Maybe I'd give it back, and never see him again.

But when we met, he suggested that we go to the cinema. After the film, we held hands, our fingers sticky from the sweet popcorn. "Do you have a boyfriend?" he asked.

"No," I answered, trying to sound as though this were unusual, when in fact I'd never had a boyfriend.

We kissed for the first time. "Then will you be my girlfriend?" he replied, and I wondered if there had been a better moment than this for anyone, anywhere, ever.

To start with, it was easy. We were in love, and it felt like everything I'd ever seen or read about romance: like being coloured in brightly after years of living in greyscale. I was floating in a hot air balloon full of misspelt poems, mix tapes and inept kisses, which took me away from my bleak home life, and I hoped it would never come down.

He was everything I imagined a boyfriend would be. He would walk me home though it took him round the long way, bring me flowers he'd picked, wrap his arms tight around me when I was cold, and wait for me patiently whenever I was late to meet him. He even insisted on giving me the ugly jumper. "You like it – you should keep it," he explained when I protested. I began to sleep while holding it, because it smelt of him.

I forgot the emptiness of both home and school whenever I was with him. Even as I failed in every other area of my life, our romance seemed all the more luminous for it. I began to meet him instead of going to lessons in the afternoons, sliding like a school-uniformed fugitive through the back gate and running down the tunnel into his arms.

I remember the day we slept together for the first time, clean and fresh and new, and the way we weren't quite sure what to do. We were certain, though, that our last time would also be with each other.

"I love you," he told me that day. "I've never said that before, and I never want to say it to anyone else."

"I love you too, so you'll never have to," I replied.

I truly thought those heady, illusory butterfly feelings would never fade. That we would always kiss until we could barely breathe, and that my heart would forever dance and skip when he rang me up, even if it was only to say "The trains aren't running today." Just 17 and More! magazine ran stories of perfect relationships, and couples who had been in love for decades, even if they had yet to publish the article "Snare him by stealing his jumper".

When things first began to slow down, two years later, I didn't understand what was happening. I decided I was just imagining that he and I were talking and laughing less; that sometimes, he would forget to call me, and that when we did speak, we seemed to have little to say.

"You're not bored of me, are you?" I asked a number of times. Eventually he replied, "I'm a bit bored of you asking if I'm bored."

I was certain this lull in romance was temporary, caused merely by a change in our lives. I had been expelled from school for throwing a Coke can in somebody's face (they had spat in my lunch first, but apparently that "wasn't an excuse") while he was now going to university. Things would return to the way they'd been before, I told myself, and in years to come we would probably laugh and ask: "Do you remember that time when we forgot how to talk to each other?"

I tried not to worry. But to my confusion, our relationship seemed to slide even further downhill. We slept together less often, and in the mornings he would be irritable because I had unknowingly stolen the duvet all night. We seemed to be less in love with each other, and these days he rarely said "I love you" first. It felt as though something had shifted between us, and I was scared that it wouldn't shift back.

Nobody had told me this was normal: I had never heard of relationships settling down, becoming calm and still, and losing their giddy, breathless spark. Somehow, my life had slid back into greyscale, and I didn't know how or why.

"Something's wrong," I persisted. "Things are different to how they were when we met."
"Of course they're different," he replied. "We know each other now. Every moment isn't going to be new."

But I desperately wanted it to be.

I wish now that someone had explained to me that love is like a beautiful spinning top: that it whirls gaily and exhilaratingly fast at the beginning, mesmerising everyone with its loud melody and pretty, gaudy blur. But that it is only when it begins to slow down that you can see exactly which shapes and hues are there, and whether it will tumble and fall, or keep on spinning gently and steadily forever. I'm certain that, for us, it could have been the latter.

Instead, I decided that I could draw things back to the start. I bought a book, one of many which promised that if I followed its instructions "he will feel crazy about you, forever!" It told me that, if I pretended to ignore him, he would be more interested in me. I wasn't quite sure how that would work or why, but when I tried to ignore him he didn't seem to notice, and I didn't think I was allowed to wave at him and say: "Hey – by the way, I'm ignoring you!"

The book said he hadn't noticed because he didn't care. Afraid it was right, I began to argue with him, and said for the first time: "I think we should split up."

"Is that what you want?" he asked.

"No," I replied truthfully. "I want things to be back as they were at the beginning."

"They're not going to be," he said.

"Why not?" I asked.

"Because we're not at the beginning," he explained.

That "wasn't an excuse", I told him, and broke up with him.

It was the first in a long string of break-ups where I would leave, crying and confused, then return, asking him to forgive me. He would, and we would try again, but I still wouldn't be able to accept that things had changed. I didn't want a stale, empty and useless relationship, I insisted: I wanted love, the kind of impossible, senseless love that could never be cajoled or coerced. Sometimes I tried to hurt him so that he would say something, anything, but he would just seem disappointed in me.

"You know," he once said, "maybe I can't give you what you want any more, but I'd never leave you."

That, I think now, should have been romance enough.

I was 22, he was 23, and our relationship ended with a lie about a fairy tale. I threw the poems, mix tapes and shapeless beige jumper away, rather than inflict them on an unsuspecting and unfortunate charity shop, and went in search of the glorious spinning top that whirled endlessly, and the hot air balloon that always floated over the clouds in the sunlight and never came down.

I failed hopelessly. I missed him more than ever, but told myself I had to forget him or I'd never move on. I flitted from one meaningless relationship to the next, deciding that each was broken whenever the joy and pain and wonder settled into anything more grown-up. I tried several times, but every romance burned out exactly like the last, leaving me even more disillusioned.

Slowly, I began to wonder if it was possible that all relationships ended up like my first. Maybe romance never lasted beyond a few years, and all the magazines and books that promised it could if you only tried hard enough were destroying relationships everywhere. I knew that half of all relationships fell through, and that women ended marriages twice as often as men. Maybe it wasn't love that failed us these days, but our expectations.

I wondered if the world was littered with couples who broke up because they were told, as I was, that "being in love forever" was possible, and felt inadequate and disconsolate when their relationships became less poetic and more absentminded. Perhaps they refused to believe that true love could forget to call, have little to say, or snap at you over a lack of duvet, not understanding that love is about acceptance, and that a relationship is only ever perfect when you barely know the other person.

If this were true, I decided, it wasn't entirely their fault. Romance is almost impossible to escape from these days, however hard you try to avoid it: it seems to spill from nearly every song, story and film, filling our radios and televisions. Its ubiquity leads us to believe that we must fall in love and stay in love, or drown in depression forever. And unless we can separate our lives from fiction, and accept that the most we can hope for is quiet contentment, we'll be forever searching for happy endings – yet will only ever be left with endings.

I hadn't spoken to my childhood sweetheart since we broke up, but while writing this, I started to wonder where he was now, and who he was with, if anyone. I had heard that he'd met someone else, but that was years ago. People split up all the time, I knew. He could still be single.

I had no number for him, but still knew his childhood telephone number off by heart, and wondered if his parents had moved house. Unthinkingly, I dialled the number, my fingers shaking and my heart beating faster, just as it had the first time I had called him about the jumper. Maybe, I thought blindly, all wasn't lost.

His mother answered on the third ring, and her voice changed when I explained who I was.
"Hello love!" she exclaimed. "I haven't heard from you in forever. It's been... how long has it been?"

"A very long time," I replied.

And after talking about nothing much for a while, I told her: "I was just wondering how he was?"

"It's funny you should ask," she replied. "He's getting married this weekend. To the girl he met after you." 

Thursday 18 September 2008

Desire: A dangerous flame

We think of it as an irresistible force – yet we are so in thrall to it that we have ceased to respect it. Jeanette Winterson looks at the power of desire

Thursday, 18 September 2008

Why is the measure of love loss? In between those two words – love, loss, and standing on either side of them, is how all this happened in the first place. Another word: desire.

While I can't have you, I long for you. I am the kind of person who would miss a train or a plane to meet you for coffee. I'd take a taxi across town to see you for 10 minutes. I'd wait outside all night if I thought you would open the door in the morning. If you call me and say "Will you..." my answer is "Yes", before your sentence is out. I spin worlds where we could be together. I dream you. For me, imagination and desire are very close.

Desire is always a kind of invention. By which I mean that the two of us are re-invented by this powerful emotion. Well, sometimes it is the two of us, sometimes it might just be me, and then I am your stalker, your psychopath, the one whose fantasy is out of control.

Desiring someone who has no desire for you is a clue to the nature of this all-consuming feeling; it has much more to do with me than it has to do with you. You are the object of my desire. I am the subject. I am the I.

When we are the object of each other's desire it is easy to see nothing negative in this glorious state. We become icons of romance, we fulfil all the slush-fantasies. This is how it is meant to be. You walked into the room... Our eyes met... From the first moment... and so on.

It is safe to say that overwhelming desire for another person involves a good deal of projection. I don't believe in love at first sight, but I do believe in desire at first sight. Sometimes it is as simple as sexual desire, and perhaps men are more straightforward there, but usually desire is complex; a constellation of wants and needs, hopes and dreams, a whole universe of uninhabited stars looking for life.

And nothing feels more like life than desire. Everyone knows it; the surge in the blood, cocaine-highs without the white powder. Desire is shamanistic, trance-like, ecstatic. When people say, as they often do, "I'd love to fall in love again – that first month, six months, year...", they are not talking about love at all – it's desire they mean.

And who can blame us? Desiring you allows me to feel intensely, makes my body alert as a fox. Desire for you allows me to live outside normal time, conjures me into a conversation with my soul when I never thought I had one, tricks me into behaving better than I ever did, like someone else, someone good.

Desire for you fills my mind and thus becomes a space-clearing exercise. In this jumbled, packed, bloated, noisy world, you become my point of meditation. I think of you and little else, and so I realise how absurd and wasteful are most of the things that I do. Body, mind, effort, are concentrated in your image. The fragmented state of ordinary life at last becomes coherent. No longer scattered through time and space, I am collected in one place, and that place is you.

Simple. Perfect.

Until it goes wrong.

The truth is that unless desire is transformed into love, desire fails us; it fails to do what it once did; the highs, the thrills. Our transports of delight disappear. We stop walking on air. We find ourselves back on the commuter train and on our own two feet. Language gives it away; we talk about coming back down to earth.

For many people, this is a huge disappointment. When desire is gone, so is love, and so is the relationship. I doubt, though, that love is so easy to shift. Loving shies away from leaving, and can cope with the slow understanding that the beloved is not Superman or Miss World.

We live in an "upgrade" culture. I think this has infected relationships. Why keep last year's model when the new one will be sleeker and more fun? People, like stuff, are throwaways in our society; we don't do job security and we don't offer security in relationships. We mouth platitudes about time to move on, as though we were doing something new-age and wise, when all we really want is to get rid of the girlfriend/boyfriend/husband/wife.

I don't want a return to the 1950s, when couples stayed together whatever the hell, but whoever said that relationships are easy?

Advertising always promises that the new model will be easier to use. And of course when you "upgrade" to the next relationship, it is also easier – for a while.

If you are pretty or personable, handsome or rich, serial relationships offer all the desire and none of the commitment. As sexual desire calms, and as the early fantasies dissolve, we begin to see the other person in real life, and not as our goddess or rescuer. We turn critical. We have doubts.

We begin to see ourselves, too, and as most of us spend our entire lives hiding from any confrontation with the self, this sudden sighting is unpleasant, and we blame the other person for our panicky wish to bolt. It is less painful to change your partner than it is to confront yourself, but one of the many strange things about love is that it asks that we do confront ourselves, while giving us the strength of character to make that difficult task possible. If desire is a magic potion, with instant effect (see Tristan and Isolde), then love is a miracle whose effects become apparent only in time. Love is the long-haul. Desire is now.

An upgrade culture, a now culture, and a celebrity culture, where the endless partner-swapping of the rich and famous is staple fare, doesn't give much heft to the long-haul. We are the new Don Giovannis, whose seductions need to be faster and more frequent, and we hide these crimes of the heart under the sexy headline of "desire".

Don Giovanni – with his celebrated 1,003 women, is of course dragged off to Hell for his sins. Desire has never been a favourite of religion. Buddhism teaches non-attachment, Christianity sees desire as the road to the sins of the flesh and as a distraction from God. Islam has its women cover themselves in public lest any man should be inflamed, and jeopardise his soul. In Jewish tradition, desire ruins King David and Samson, just as surely as modern-day Delilah's are still shearing their men into submission. Yet it would be misleading to forget the love poem in the Bible that is the "Song of Solomon"; a poem as romantic as any written since, that gives desire a legitimate place in the palace of love.

And quite right too. Desire is wonderful. Magic potions are sometimes exactly what is needed. You can love me and leave me if you like, and anybody under 30 should do quite a lot of loving and leaving. I don't mean that desire belongs to youth – certainly it does not – but there are good reasons to fall in love often when you are growing up, even if only to discover that it wasn't love at all.

The problems start when desire is no longer about discovery, but just a cheap way of avoiding love.

It is a mistake to see desire as an end in itself. Lust is an end in itself, and if that is all you want, then fine. Desire is trickier, because I suspect that its real role is towards love, not an excuse in the other direction.

There is a science-based argument that understands desire as a move towards love, but a love that is necessary for a stable society. Love is a way of making people stay together, desire is a way of making people love each other, goes the argument. This theory reads our highest emotional value as species protection. Unsurprisingly, I detest this reading, and much prefer what poets have to say. When Dante talks about the love that moves the sun and the lesser stars, I believe him. He didn't know as much as we do about the arrangement of the heavens, but he knew about the complexity of the heart.

My feeling is that love led by desire, desire deepening into love, is much more than selfish gene-led social stability and survival of the species. Loving someone is the closest we can get to knowing what it is like to be another person. Love blasts through our habitual sclerotic selfishness, the narrow "me first" that gradually closes us down, the dead-end of the loveless life.

There are different kinds of love, and not all of them are prefaced by desire, yet desire keeps its potent place in our affections. Its releasing force has no regard for conventions of any kind, and it crosses genders, age, social classes, religion, common sense and good manners with seemingly equal ease.

This is bracing and necessary. It is addictive. Like all powerful substances, desire needs careful handling, which by its nature is almost impossible to do.

Almost, but not quite. Jung, drawing on alchemy, talked about desire as the white bird, which should always be followed when it appears, but not always brought down to earth. Simply, we cannot always act on our desire, nor should we, but repressing it tells us nothing. Following the white bird is a courageous way of acknowledging that something explosive is happening. Perhaps that will blow up our entire world, or perhaps it will detonate a secret chamber in the heart. For certain, things will change.

I don't suppose that the white bird of desire is nearly as attractive to most of us as the white powder substitute with natural highs. Desire as a drug is racier than desire as a messenger. Yet most things in life have a prosaic meaning and a poetic meaning, and there are times when only poetry will answer.

For me, when I have trusted my desire, whether or not I have acted on it, life has become much more difficult, but strangely more illuminated. When I have not trusted my desire, out of cowardice or common sense, slowly I have gone into shadow. I cannot explain this, but I find it to be true.

Desire deserves respect. It is worth the chaos. But it is not love, and only love is worth everything.

Wednesday 17 September 2008

A tribunal must tell us what to fix. And whom to punish


 

 

The state shirked its role while City stupidity and greed slid into thieving. When the crisis subsides, an inquiry is needed

Who are they? Where are they now? They said it could not happen again. They said they were masters of the universe. They had conquered history itself and had that wily monster quivering at their feet. There would be no more crashes, no more recessions, no more booms and busts, just moonbeams and rainbows and jam for tea.
If the mistakes that have collapsed the world's financial markets had been made by statesmen and had led to war, there would be corpses swinging from lampposts. If they had been made by generals, they would be falling on their swords. If they had been made by judges or surgeons or scholars, some framework of professional retribution would be rolling into action. But those responsible for our finances can apparently vanish into the forest like Cheshire cats, leaving only gold-plated grins. Not for them a Hague tribunal or a Hutton inquiry. They are not just good at shedding risk - they shed blame.
We are seeing what historians of ideas call a paradigm shift. In the last century, the necessities of war and the rise of socialism thrust government intervention to the fore. When that failed in the 60s and 70s, the "Reagan-Thatcher revolution" turned the emphasis back to private enterprise and deregulation. That era has ended with astonishing abruptness. Governments in Britain and the US have been nationalising and spending public money with a will that would have made Attlee or Roosevelt blush.
Those of us who learned economics in the old days were taught that banks had to be regulated oligopolies because their role in a capitalist economy was crucial. It relied on the sustenance of public trust which only government, backed by the citizen as taxpayer, could dispense. In Britain, retail banks, merchant banks and building societies were legally distinct, separated by barriers to prevent cross-pollution of the sort that caused the 1929 crash.
JK Galbraith's book on that crash is the Dr Strangelove of financial holocaust. If it offers one lesson, it is that crashes are not acts of God; they are caused by the interaction of corporate behaviour and state regulation. Nor does the market supply its own discipline. Understanding that, wrote Galbraith, "remains our best safeguard against recurrence".
Such lessons learned in youth tend to stick. Hence I remember feeling queasy when Thatcher's "big bang" of 1986 demolished the firewalls and permitted the trading of risk and reward across the entire financial sector. It was a reform repeated in the US with the repeal of the post-depression Glass-Steagall law. The same nervousness greeted each subsequent shock to the system - the 1991 housing crash, Lloyd's of London, Barings, Enron, Northern Rock. Each time we were assured that new lessons had been learned. Light-touch regulation was working fine, even if sometimes boys will be boys.
The naivety of all this is now exposed. Politicians encouraged the public to treat home ownership as a "right"; property became the citizen's gilt-edged stock. Bankers encouraged staff to speculate with depositors' money by awarding them huge bonuses to maintain turnover. Those charged with the guardianship of other people's savings behaved, in effect, like thieves. Sheer greed drove young men and women mad. Nobody in authority batted an eyelid.
At the same time Gordon Brown "set free" the Bank of England to fix interest rates. I recall one commentator telling me that I should be "overjoyed your children and grandchildren will now never have to experience inflation". No, they are just unemployed. It was a charade. On the back of low inflation, the Bank fuelled a credit boom that was clearly vulnerable if prices rose and/or credit collapsed. Both have occurred.
There is no such thing as a "non-political" official rate of interest. The Bank is now under pressure both to cut rates to beat recession, and yet raise them to beat inflation. It cannot do both. Since it would be 1929-style lunacy to increase rates just now, Brown must in effect tell the Bank to reduce them by shifting his inflation target. It is a blatant and properly political decision.
There is no perfect market. Markets need regulation, just as communities need law. Yet as Galbraith again wrote, regulators may start life "vigorous, aggressive, evangelical, even intolerant", but mellow with age and become "an arm of the industry they are regulating - or senile".
To ignore the danger in 125% mortgages or the City bonus culture showed both industry capture and senility. The first was loan-sharkery, and the second was obscene. So distorting to sound finance are year-end bonuses that they should simply be banned. Those with the responsibility of gambling with other people's savings should do so on salary.
While naive Thatcherism may have taken a pasting, there is no reason why capitalism should protest the presence of big government in what is its proper realm. We do not curb state power when the security of the state is at risk. Nor should we do so when the security of the economy is equally jeopardised.
The strangest phenomenon these past few days has been the eagerness to enforce "moral hazard", a concept regarded by the governor of the Bank of England as a deterrent to risk-taking. This is absurd. The collapse of Enron was no deterrent to Lehman derivative traders. The psychology of money does not work that way. The victims of the credit crunch are not just a few wild traders. They are all participants in the UK economy. I cannot see the sense in letting Northern Rock or Lehman or any other deposit-holding institution go bust just so regulators who have failed in their jobs can seem macho after the event.
This is not a question of blowing taxpayers' money on fat cat financiers. I would happily arrest and try all those whose stupidity and greed are about to cause untold hardship to millions - if I could find a law they had broken. Dr Johnson was quite wrong to say a man is "never more innocently employed than in getting money". But when a building collapses, you do not kill the architect. You try to get him to build it again.
Underpinning financial credit is an absolute function of government and one that has not changed since the birth of capital. It clearly needs constant redefinition. When this saga is through there should be a tribunal of inquiry. Then we can be told what needs mending, and whom to take out and shoot.


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Crunch time


 

 

We've heard the bankers' stories. The economists have had their say. But what do the opponents of capitalism make of the global financial crisis? Is this the moment they have been waiting for? Stephen Moss and Jon Henley ask high-profile leftwingers for their views on the meltdown - and whether any good can come of it

Wall Street traders

Traders at the Wall Street Stock Exchange during the collapse of Lehman Brothers Holdings. Photograph: Rex Features

Daniel Cohn-Bendit

Student leader in Paris, 1968
This financial crisis is for capitalist neo-liberals what Chernobyl was for the nuclear lobby. It's a catastrophe. I hope we all learn lessons from it. But am I optimistic that we will? That's another question. To think that the biggest neo-liberal nation in the world would start nationalising banks ... we're rubbing our eyes in disbelief.
It's not the end of capitalism because capitalism has always had the intelligence to reform itself. It will be the end of capitalism when it's incapable of reforming. However, the belief that the market is god is over. It must now be regulated.
We fought for 20 years to bring attention to climate change. It took us a while, but we were right. This crisis will help us in our arguments for sustainable development - that we need a balance between the environment, society and the economy - but I get no joy from it; it saddens me deeply. Ordinary people lose everything, while the big bankers themselves walk away with millions.
· Daniel Cohn-Bendit was leader of the May 1968 student protests in Paris, when he was known as 'Danny the Red'; he is now a green MP

Jarvis Cocker

Singer
It's really nice seeing capitalism getting its comeuppance. It had gone too far: I think most people can understand capitalism when it's about companies that make real products, but when it's about organisations that just make money ... that's abstract capitalism, it's beyond most ordinary people - and I include myself among them. I mean, you see the FTSE index, or whatever, running along the bottom of the TV screen and generally it just doesn't impinge at all on the way you live your life, and then suddenly you're told your life is going to take a nosedive. Who understands that?
The truly sad thing is that all this is taking place with a so-called Labour government in power, a government that should have the interests of the majority at heart, but has instead played the role of a pimp.
Maybe a bit of a recession will do us some good. A lot of people have been living beyond their means. We've all done it, I've done it: you feel a bit depressed, you go and buy something. People might now actually talk to each other a bit more, make their own entertainment, all those other great northern cliches. The tragedy is that it will be the ordinary people who will bear the brunt. The guys who are responsible may have to sell the yacht.

Salma Yaqoob

Birmingham City councillor
This crisis opens up possibilities for alternative economic models as the wheels come off this one, but I'm worried about the immediate social consequences. A leaked report from the Home Office a couple of weeks ago referred to a rise in racism and social tensions. My concern is that we'll now see some ugly racist scapegoating as politicians try to pass the buck.
When the markets were being treated as gods, we were always being promised that there'd be a trickle-down of prosperity. But all that's trickled down has been a greed-is-good philosophy. The consequence is a more unequal, self-centred, crueller Britain. It's important that we should reflect on the kind of society we've become, but also on the kind of society we want to be. Recently, Unicef reported that Britain's children are the unhappiest in Europe, and I think that is not unconnected to an economic climate that forces parents to work longer and longer hours. We hear a lot of talk about youth and gangs and guns; what we don't talk about are the economic policies that would allow families to nurture each other and make young people feel valued.
The very people for whom it was a sacred othodoxy that there should be no government intervention are now coming to the government on their hands and knees begging for assistance. But what about the government intervening on behalf of ordinary people? Why not do something literally concrete on the ground and start building cheaper social housing? Why not put people at the centre of things?
· Salma Yaqoob is a Birmingham councillor and vice-chair of the Respect party

Ken Livingstone

Former Mayor of London
Sadly, I don't think this will be the end of capitalism. But there is going to have to be a return to a much, much more interventionist state. As a system for the distribution and exchange of goods, you can't beat the market. But the mistake a lot of politicians have made is to think that because the market was good at that, it could be good at everything: it could train workers, create infrastructure, protect the environment, regulate itself. Quite obviously, it can't.
So the real issue is, what sort of international structures do we need to ensure this never happens again? Thatcher and Reagan deregulated massively and let the financial markets do as they liked - and they've turned into one bloody great big rip-off. The good news is, there'll now be a realisation - even George Bush sees this now - that we need international regulatory mechanisms that will ensure, for example, that these people and operations actually pay tax. There'll be a realisation in Britain that while it's certainly useful to host a world financial centre, it has to rest on a solid, genuinely productive real economy. In China now they make things; we've decided we're not interested in that.

Bob and Roberta Smith

Artist
Yesterday, at the same time as Lehman Brothers went belly up and Merrill Lynch was bailed out, Damien Hirst made £70m. This tells us that capitalism is not dead. The rich got richer, and the poor got poorer - and in the evening, the rich went to an art sale and spent the small change in their pockets. This crisis is kind of like the capitalist cat shifting on its cushion.
I don't buy the romanticism of the left: you can't kill capitalism, trade is how people operate. But I do think the left's analysis has to be coruscating and hard. The number-crunching, the smokescreens, that particular flavour of snake oil has to be finished; this has to be about real people now. There should be no self-congratulation, no, "Oh good, they're getting their comeuppance," because behind every banker there are ordinary people in bigger trouble.
· Bob and Roberta Smith is the pseudonym of artist Patrick Brill

Caroline Lucas

Green MEP
This is a defining moment; the end of the kind of unbridled, deregulated capitalism of the past few decades. We are going to have to return finance to its role as servant rather than master of the global economy, and we're going to have to break up financial institutions into smaller units: mega-banks make mega-mistakes that affect us all.
The way forward is the Green New Deal [co-formulated by, among others, Caroline Lucas and Guardian economics editor Larry Elliott]. We have to tackle a triple global crunch. In the face of a credit-fuelled financial crisis, we're going to have to re-regulate finance and taxation, clamp down on tax havens, split retail banking from merchant banking and securities trading. In the face of accelerating climate change, we have to face up to global warming. And in the face of an oil-price crisis, we're going to have to find the solutions to encroaching peak oil.
The situation we're in now is an opportunity, although it remains an enormous threat also. It's the chance for us to move forward in a way that's sustainable economically and environmentally. This is about real people and real jobs, right now. I really wish we'd managed to get that message through before it happened.

Ken Loach

Film director
This is further evidence, if any were needed, of the fact that the market is not and never can be the answer. (The need to pursue illegal wars is pretty strong evidence too, of course.) You look around the world and you see massive need on the one hand, and massive wealth on the other, and the two never connect. The market is massively inefficient, capitalism is massively unstable and turbulent, and it's insane that we are all bound to this terrible wheel of instability.
The real left is making a lot of noise about this. There'll be a convention of the left during the Labour party conference, all the shades of genuine leftwing opinion, and we'll be hammering all these questions out from a socialist perspective. But if the papers and the broadcasters fail to record it, it's very difficult for these ideas to penetrate the public consciousness. The media just turns a deaf ear; it chooses not to hear it. It's a lot more interested in the careerism of whoever's after Gordon Brown's job.
Will this be a defining moment for the left? It should be, of course but it's very difficult to be optimistic given our history of failure. The war against Iraq was a massive opportunity to create a coherent anti-capitalist movement, to find a real socialist alternative, and we let it slip through our fingers. This is another such opportunity, and we must not let it go.

Michel Onfray

Philosopher
Is this the end of capitalism? Absolutely not. The key feature of capitalism is that it's malleable. It has been through antiquity, feudalism, the industrial era, it has worn the guise of fascism and now it's wedding itself to the ecology cause. After this latest event, it will take on a new form. It is indestructible and works like the Hydra of Lerne, cut off one head and another grows in its place. Is this the end of society's obsession with money and credit? Not at all.

Chris Harman

Socialist Workers Party
This is a very, very serious crisis of capitalism: it has been the build-up of private borrowing that has kept the system going, and it's coming unstuck. The whole system is unwinding; the other day we saw the biggest nationalisation in the history of humanity and that still wasn't enough. Governments don't know what to do, and it's the rest of us who have to live with the consequences. The Labour party is offering no alternative, the Lib Dems are offering no alternative, the Conservatives are offering no alternative.
This could be a big moment for the left. But we really need to stand up and use the "c" word, say this is a crisis of capitalism and that people are suffering. The thing is, all the media coverage yesterday was of the bankers leaving Lehman Brothers with their boxes, but the people who will really be hit are the cleaners, the secretaries - what did we see of them? We have to build resistance. Because so far we've only seen the minor problems; people stuck in foreign airports or having a bit of trouble getting a job. Things are going to get much, much worse.
· Chris Harman is the editor of International Socialism (SWP)

George Monbiot

Green campaigner
It's only in times of crisis that people are prepared to contemplate taking to the streets. It was noticeable that there were a lot more protests - against road developments, for instance, and against the Criminal Justice Act and other infringements of civil rights - in the wake of the 1991 recession than there were in the mid-90s, when people were feeling richer. Some people, faced with recession, tend to hunker down, but others confront the government and demand a better deal, and that gives the left hope.
A Keynesian solution along the lines of Roosevelt's New Deal could deliver many of the things that the left is calling for - more public spending, more training and education. I'm particularly interested in the idea of a green new deal, which would employ large numbers of people to insulate homes and carry out major environmental works. Remember that the central plank in the New Deal was the Civilian Conservation Corps, which employed three million people.
It is striking that the left has been slow to capitalise on the situation. There is now a good opportunity to build a common front between trade unions, disillusioned labour voters, greens and people who feel that their economic position is slipping.
· George Monbiot is a Guardian columnist

Max Keiser

Former broker
This is not a blip. It's extremely significant. We will see a shift in power away from the US, and towards the developing world - to countries such as Brazil and the Gulf states that have commodities to sell, and to China, where the savings ratio is high. We are going to see a new world order. America as a driver of the global economy is finished.
The left has nothing to say about any of this. And because the left has no economic programme, we will see the rise of social unrest. We are already seeing it in the US. The left has no real response to that either.
· Max Keiser is a former broker, and presenter of The Truth About Markets on Resonance FM

Tony Benn

Former Labour minister
I remember the 1930s. What the Depression did then was to stimulate antisemitism. I met Oswald Mosley in 1928 when he was a Labour MP. The next time I met him he was wearing a blackshirt. Where there is fear, there is scapegoating, and that is very dangerous.
Blair and Brown based their politics on a belief in the market: the market answered all your needs and the state had to be kept out. That confidence has now collapsed and New Labour is seen for what it is. You can't, as New Labour believed, nurse capitalism.
I believe a new labour movement will emerge from this with a more realistic sense of how capitalism works. There is a left convention at this year's Labour conference, a sort of parallel conference. This year's Labour conference is the first in my lifetime when you will not be allowed to vote, so the left convention will get a lot of attention. At last, after a period when we've been told to trust the gamblers, there are many relevant ideas emerging on the left.

Lindsey German

Stop the War coalition
This growing crisis will mean misery for working people and shows that everything we've been told about the free market has been false. At the same time, it's a big opportunity. Millions of people will be questioning why this has happened, what's wrong with the system, is it 1929 all over again? The left needs to put forward answers. People have the right to work; we have a housing crisis, so why not employ people to build more houses? We are facing great challenges, but there is also a historic opportunity for the left to remake itself. Capitalism has had its chance and failed; now it's socialism's turn.
· Lindsey German is Convenor of the Stop the War Coalition and Left List candidate in this year's London Mayoral election

Sheila Rowbotham

Socialist feminist
In the late 19th century and also in the 1930s, the impact of depression made people begin to question whether the free market and a completely unfettered form of capitalism was the best form of organising society. In both periods it encouraged on the left the idea of a complete social transformation through revolution, and also encouraged people to devise various schemes for social reform. The problem now - unlike in the 1880s, when people discovered the ideas of socialism, and in the 1930s, when it seemed that communism was the solution - is that the left doesn't have a coherent alternative vision.
The Labour party has always been ambiguous about whether it is trying to make capitalism more efficient, or whether it is trying to soften its harshness. Since the 1970s, the left has been much weakened, as neoliberal ideas became totally ascendent. Under Blair, the idea that the Labour party was committed to any redistribution was pushed to the sidelines. I would like to see a new kind of left - a left that would relate to the present predicament. There is a consensus forming that says an unregulated financial system is a disaster, but whether that new left can be formed is questionable. I'd be very glad to see it happen.
· Sheila Rowbotham is professor of gender and labour history at Manchester University

George Galloway

Respect MP
I think the end of capitalism will be a process, not a single event. But each event we've seen so far has gone deeper than people have predicted, and we don't know how deep this one will go. It could well be that it marks the collapse of at least a major section of the capitalist economy: the financialisation of the economy that has been powering ahead since the deregulation and neo-liberalisation of the Thatcher-Reagan years.
As far as the left is concerned, well, the Liberal Democrats have effectively moved to the right in the face of this week's events, and New Labour, with a few honourable exceptions, abandoned that territory a very long time ago. Now I would have thought - in fact, I know - that among the public in general there is a much bigger and a much wider audience for progressive ideas than there has been for some time. But what the left still has to overcome is its inability to speak in a language that ordinary people can understand. And to stop arguing about dead Russians.

Hari Kunzru

Novelist
I'm in New York right now and the feeling here is quite visibly one of panic. I've just met, quite randomly, three people who were helping their friends clear their desks. Apparently, 12,000 jobs went, just like that, and Wall Street represents 20% of the city's jobs and something like 90% its tax base. So there's a definite sense here of systemic crisis.
A great financial economist and historian called Michael Hudson talks about how the US economy is basically fictitious, based on pretend earnings and pretend values. This will only genuinely become a crisis of capitalism if people generally become aware that much of the growth and prosperity produced by capitalism is a fiction, and if the consensus about where the real global value lies shifts radically. In other words, if people stop believing that apparently wealthy countries actually are producing wealth.
I don't immediately expect to be living in some kind of Mad Max world. But this could be the death knell of the time when we were all singing the beauties of free-market capitalism.


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In praise of perversion

Few instincts are so strong or so widely shared as the urge to condemn other people for their sexual idiosyncrasies. And yet, argues Howard Jacobson, it is when we explore the outer boundaries of our sexual desires that we become most fully human

Wednesday, 17 September 2008


"We are all sick in our own way," Felix Quinn declares. Felix Quinn is the hero of my new novel, The Act of Love, and he, admittedly, has an axe to grind. He is a cuckold and he likes it. His idea of a good time is lying lonely in his bed, knowing that his wife is out on the night, enjoying the embraces of her lover. This will be incomprehensible to some men, and not to others. But we shouldn't, where the daemon of sex is concerned, be surprised by anything. I don't always agree with the heroes of my novels but I agree with Felix: we are all sick in our way. In the erotic life of men and women there is no such thing as health.


A new book about Franz Kafka discloses that he was more than casually interested in hard pornography. Lovers of literature shudder inwardly, as they did when they discovered something similar about Philip Larkin, and as an earlier generation shook their heads in disbelief over Charles Dickens's indiscretions with women young enough to be his daughters. Though we want our writing muddied, we like our writers clean. But what else should we have expected of the author of The Metamorphosis and The Trial, those bleakly comic unforgiving tales of ignominy, guilt and shame? This is not to say that pornography is the only explanation for his temperament or the only route he might have taken to explore it, but it makes sense to me that such a man would have found something congenial to him I don't say pleasant or even satisfying in the act of perusing it. "The sense of the tragic increases and diminishes with sensuality," Nietzsche wrote. Meaning that the more the senses engross us, the more philosophically serious we become. It is an important formulation: we are philosophers by virtue of our sexual appetites, not despite them.

Pornography is not, of course, the only expression of sensuality, but some extreme sorts of sensuality tend inexorably in its direction. In its written form, pornography's only convincing conclusion is death, for ecstasy without restraint wants nothing less. Pictorially, too, in the mortuary fixity of its imagery it is essentially morbid, refusing change of mood or flux of feeling. Either way, pornography is a trance, demeaning all parties to it, those looked at and those looking, locking them into a perpetuity of shame. There is nowhere to run to in pornography as there is nowhere to run to in the novels of Kafka. On the last page of The Trial, Joseph K watches impassively as the mysterious "partners" thrust a knife into his heart. "Like a dog!" he says. "It was as if he meant the shame of it to outlive him." That could be pornography he is describing..........

It is not, I hope, perverse of me to cite the above as prime among the reasons along with what we owe to curiosity why we should acquaint ourselves with pornography, in whatever form it takes. In its ominous nothingness, pornography familiarises us with humiliation and humiliation with despair and loss. And loss stimulates the imagination. Winning is a dead end, in sex as in everything else. It is only out of a keen sense of loss that we tell stories, write poems, and learn to liberate ourselves from damagingly misleading optimistic fantasies of sex as purposeful and joyous, whether purposeful in God's sense of procreation in the divine image, or in Darwin's sense of selecting what's best of us for futurity. Sex is for nothing, pornography teaches. Unless you call ignominy something.

When he wasn't looking at pornography or writing The Trial Kafka visited brothels, which if you like is just putting pornography into action. I am glad for his sake and for literature's that he did. I feel about prostitution as I do about pornography that a man ought to avail himself of whatever is on offer. Paid-for sex, in all its varieties sex stripped of responsibility and sentimentality (though even with a prostitute it will not always be so simple) answers to imperatives which respectable courtship and marriage prefer to ignore. Whenever I encounter a man who says he has never visited a prostitute, either because the thought appals him or, as is more commonly asserted, because he doesn't need to pay for sex, thank you very much, I believe that he is lying, or, worse, that he is a fool. Among the many reasons for paying for sex the most salient is the wanting to pay for sex; and that "want" is not to be confused with need. We know that from the examples of famously glamorous men who have all the women their hearts' desire but still routinely get caught and who is to say don't hope to get caught? with a hooker in the back seat of their automobiles. All the women one needs do not satisfy the desire to pay for a woman one does not need.

So what does drive a man to pay for sex, when paying must negate so much of the romantic baggage and vanity with which sex is laden? Loneliness explains some of it, but the lonely are obviously needy, and we are addressing needs which are less apparent. Feminist opponents of the institution of prostitution see paying for sex as an expression, pure and simply, of male aggression. The man shells out to subject a woman to his will. I don't doubt that some men pay to feel in charge, though it's a paltry authority that must be bought and men of this sort will soon discover they can impose themselves more effectively (in their own eyes at least) through violence that doesn't cost a penny. Those who go on paying do so not to assert their masculinity but to demean it. It is an ironic or self-defeating transaction, an act of mockery and submission, a species of masochism whether the man asks the prostitute to beat and degrade him or not. Catherine Millett, author of The Sexual Life of Catherine M, says she took on promiscuity to show that sex is separable from feeling. This is nonsense. The attempt to find feelinglessness in sex is an ambition loaded with feeling. To those who aspire not to feel in the course of a sexual encounter, the attainment of the illusion of feelinglessness is exquisite.

Thus the nothingness one goes in search of in a brothel is, by the wonderful inverse law of eroticism, not a nothingness at all. Beyond a certain stage the stage at which many of us call time on eroticism and pour what's left of our desires into work or an allotment sex functions as an exchange of shame and power: merely functional procreation giving way to the longing to pass from person into thing, to be the instrument (or controller) of another's will, to be less (or more) than human.

"In the end," the great French philosopher of eroticism Georges Bataille wrote, "we resolutely desire that which imperils our life." Not accidentally, not half-heartedly, but resolutely. I do not say we want to die (though on occasions we think we do) but we want sex to take us as close to death as life allows, the paradox being and this is a paradox which most sexual perversions celebrate, whereas love, sweet love does not that we are never more alive than when we are staring into loss..........

Not quite true that love, sweet love does not. Allow love to be its own perversion and it too can take one to the precipice. This is the principle by which my hero Felix lives his life. Imperilled by love and the hold it exerts on him, he embraces the very thing he dreads - embraces it because he dreads it - which is his wife Marisa's infidelity. He is never more alive than when she is in the arms of another man. Othello is, of course, the same: a man energised by jealousy. The difference being that Othello doesn't know that jealousy energises him whereas Felix does. And here's a question: could it be that what appals us most when we descend to jealous rage is not the thought that we have been betrayed, but the kernel of sickly pleasure we discover in it? Is Othello, in other words, more disgusted by himself than he is by Desdemona? The question isn't only academic. Had Othello taken the Leopold Bloom route, or indeed Felix's, and fetishised his fears, might not things have turned out differently for all parties? I don't say happily, I simply say otherwise. Better, anyway, to be familiar with one's nature and accepting of its shameful depths, than to flounder hopelessly as Othello does. Though I accept that tragedy might still await the complaisant husband whose taste for cuckoldom demands ever more extravagant betrayal - a spiral from which the hero of my novel is unable, or unwilling, to break free.

Or is that the moralist in me talking? The masochism into which Felix hurls himself is without doubt self-destructive and tyrannical, but what is not. Perverted or obsessive sex lands up in an emotional cul-de-sac, rubbing at its single itch, finding pleasure only in the one thing endlessly repeated or exacerbated - more and more pain, more and more pornography, more and more visits to houses of ill repute - but that which we call respectability fares no better. When I was growing up it was common to hear husbands call their wives "mother". Whether this was an allusion to their own mother or the mothers of their children their wives had become I doubt they knew. Either way, the wife was locked into her role and the husband into his script. The endearments of the long happily married fulfil the same function, and in the narratives of their cheerful longevity one always detects the cruelty of opportunities foregone, disappointment, equivocation, compromise, and a haunted curiosity as though they know they will go to their graves with the majority of their questions unanswered. You cannot enjoy the consolations of calm if you are an obsessive: but nor can you attain the poisoned bliss vouchsafed to the dissolute and the deranged if you are cautious and well-adjusted. Sex lets no one off.

It is for this reason that we are fools ever to be censorious about the sexual lives of others. It is fair enough that a Catholic bishop should castigate Max Mosley for his romps with prostitutes dressed in pantomime military uniforms. Churchmen exist to excoriate the fleshly. But the rest of us have no business being superior. And no business laughing either. It's true that the banalities of life the cups of tea, the prattle of the whores, our own sad bodies unflattered by the uniforms of fantasy will always compromise our frenzied worship of the god Dionysus. But in desire tomorrow is another day; we wake to find Dionysus every bit as demanding as he was the night before. What's odd is not how Max Mosley passes his time away from motor racing administration but why more of us don't turn our hands to something similar, given the agitation of our curiosity. Which raises the question of where we draw the line between fantasy and fact. Felix acknowledges no such distinction - for him, to want is to do - but then a cuckold is the least dangerous of men. Other sexual preferences are more menacing. That Max Mosley, whatever he intended, was in some measure exorcising his family's ghosts, parodying (to erotic end) their ideology, it is reasonable to surmise; but how would we have felt about such exorcisms had they spilled into actual, un-negotiated violence? It is tempting to take the safety-valve view of pornography and fantasy and see them as licensed liberty, sex's version of carnival. But that consigns the erotic life to an eternity of pretence. And we cannot live forever in pretence. Some doing, outside the mind, is necessary. Thereafter, it is up to society to decide what it can and cannot allow to happen. The best eroticism can do against the law, in so fas as it has a choice in the matter, is to keep pushing the boundaries of the imaginable. We grow a little freer when we read De Sade's One Thousand Days of Sodom, though we know we cannot live up to its lawlessness. The imagination is an unbordered continent. In art, which is the province of the imagination, we do not judge as we judge municipally, as magistrates or policemen. Which is why, whatever our education and our civic institutions try to lull us into believing about the nature of desire, we must find the space to think, and where possible to act, rebelliously, refusing all attempts to confine us to the hell of the normative.

We are strange creatures, part angels of reflection, part beasts that claw the earth. It is too cruel that an accidental species as peculiar as we are should ever have been made to think there is a right way and a wrong way of conducting ourselves sexually, as though there were some divine pattern we were framed to follow. I don't say that giving ourselves over to the demoniacal, or just the deviant, will necessarily make us happy - why should it when it is so rarely happiness we seek in sex? - but the straight and narrow has never yet made anyone anything but miserable.


Howard Jacobson's new novel, 'The Act of Love' is published by Jonathan Cape (17.99)

Sex doctor: Keep your love life spicy

By Tracey Cox
Tuesday, 16 September 2008


You can make love to the same person for the rest of your life in a million different ways, places and situations. Here are some foreplay tips for familiar lovers and some great ideas for just about anyone.


*Combine romance with eroticism. You feel great when he sends you flowers, so why not return the favour? Try sending a bottle of expensive vintage champagne, red wine or port. Now turn that loving gesture into a sexy one. Enclose a note explaining in great detail exactly what he did to deserve such luxurious spoils.

*Become a bookworm. Invest 50 in your love life by walking into any good bookshop and walking out with your arms full of sex books. You don't have to read them cover to cover, just dip inside once in a while to keep things fresh. While you're there, splash out on a racy novel too. Find the good bits and read them out to each other as a form of foreplay.

*Have a bed picnic. Set up chilled wine and an ice-bucket in your bedroom, foods you can eat with your fingers (fresh fruit, chocolates); have an erotic movie playing in the background on the bedroom DVD player.

*Once isn't always enough. There's a lot of hype about women having more than one orgasm, but he likes double helpings too. Have sex in the morning on the weekend, then drag him back to bed an hour later.

*Be her sex slave for a day. An especially good idea if you're broke and her birthday is looming. All you need to do is offer to devote one entire day to pleasuring her.

*Flirt with each other even if you've been together years. Experts say flirting sends natural stimulants surging through the body, creating an instant emotional "high" not unlike orgasm. Pretend you've just met him and act as you did at the beginning. Be aware of your body when you move in front of him and chances are he'll sit up and take notice too.

*Send sexy notes. The written word is extremely powerful. In the fridge stuck to the juice, in her briefcase and make-up bag. Each one describes bits of her you find so sexy. Or you could make them 10 things you'd love to do to her right that second.

*Be his mistress. If he's going to have an affair, make sure it's with you. Arrange to meet him at lunchtime in the bar of a plain but presentable hotel. Book a room, buy a bottle of champagne and have forbidden, illicit, wild sex.

*Remember kissing? It's what you used to do when you first met. Many couples find that kissing stops once the relationship gets going or dwindles to a quick snog before getting down to business. A long, passionate kiss can do more to turn both of you on than putting your hands straight down the front of his trousers.

*Keep your clothes on. Feel each other through your clothing, put your leg in between her thighs and let her gyrate against it.

*Be pushy. Bearing down with your vaginal muscles during sex seems to trigger orgasm for many women.

*Keep your eyes open. Watch what's going on when you have sex: look into their face, watch your genitals moving in and out. Stimulate the sense of sight, not just touch.

*Be unpredictable. You're not going to surprise him if you suggest having sex on a Saturday night as you both climb into bed. But you will catch him unawares if you cuddle him from behind when he's cleaning the car, washing up or reading a book.

*Make the move. If your partner is always the one to initiate sex, the message you're sending is: I do it to please you, not because I want to. This leaves both of you feeling cheated. The person initiating sex feels sexier because they're taking control and giving themselves power. Be the boss by taking the lead role during lovemaking as well.

*Lie a little. He's away on business? The next time he calls you late at night, skip the usual stuff and tell him, in intimate detail, what you're wearing. Move on to what you're going to do to him when you get your hands on him. The juicier the better.

*Try one new thing each fortnight. Start off simple. Have a bath together, give each other a foot massage, take off her top or his shirt without using your hands. Then move into things like making love to them with their hands tied behind their back and masturbating in front of each other.

*If you're excited, show it. The biggest turn-on of all is seeing how much you're exciting your partner. If he's driving you wild, show him better still, say so.


Adapted from 'Hot Sex', by Tracey Cox (Transworld, 8.99)

Tuesday 16 September 2008

Hank Paulson has turned a drama into a crisis

By punishing shareholders, the US Treasury Secretary had made the rescue of other troubled banks almost impossible
Anatole Kaletsky

It looks as if the prophets of doom may have been right after all. With the demise of Lehman Brothers and Merrill Lynch - and the threatened collapse of the world's largest insurance company, American International Group - we are now unquestionably in the worst financial crisis since the Great Depression.

But does this mean that the “real” economy of non-financial jobs, investment, consumer spending and housing also faces its greatest disaster in 60 years, as Alistair Darling has said?

Probably not. The real economy and the world of finance can easily move in opposite directions. Most of the truly imprudent borrowing and lending of the past few years has occurred within the financial sector, with one bank or hedge fund lending insane amounts of money to another. Much of this debt could, in principle, be wiped away without affecting anybody apart from the financiers who were riding this crazy merry-go-round - and that has been pretty much the story of the past 12 months. Tens of thousands of jobs have been lost in Wall Street and the City, but the impact beyond that has been quite modest, except on property values and some of the luxury goods and services previously bought by these millionaires.

The past few days' events, however, have raised two alarming qualifications to this generally reassuring story. The first is that the decoupling between financial and economic conditions that I have been expecting - and which has broadly happened - can only be a matter of degree. The non-financial economy can shrug off a certain amount of bloodletting in the City and Wall Street, but if the turmoil escalates to the point where a country's entire financial structure starts collapsing, the consequences are bound to be dire for non-financial businesses and jobs.

This tipping point has not yet been reached in America or Britain. But it suddenly seems perilously close - with stock market prices plunging on Monday to the point where serious questions could be raised for the first time about the viability of key financial institutions such as AIG, Citibank and Bank of America, or of UBS in Switzerland or of Halifax, Royal Bank of Scotland and Barclays in the UK.

Why are these banks suddenly in such deep trouble? This brings us to the second alarming qualification to my optimism about economic and financial decoupling.

It could be that the divergence between the financial and real economies, instead of resulting in a better-than-expected performance of the real economy, will take the form of a much more catastrophic financial crisis than the economic fundamentals seem to justify. Such a financial catastrophe could then turn what would have been just a modest economic slowdown or mild recession into a genuine disaster.

The risk of such a disastrous divergence between the worlds of finance and economics, with the financial system spinning completely out of control despite an otherwise decent outlook for the US and world economies, is much greater today than two weeks ago. And the reason can be reduced to one name - Henry Paulson, the Secretary of the US Treasury.

By deciding essentially to wipe out shareholders in Fannie Mae and Freddie Mac and acting even more harshly to the shareholders of Lehman Brothers this weekend, Mr Paulson has sent the clearest possible message to investors around the world: do not buy shares in any bank or insurance company that could, under any conceivable circumstances, run short of capital and need to ask for government help; if this happens, the shareholders will be obliterated and will not be allowed to participate in any potential gains should the bank later recover.

This punitive policy towards the shareholders in Fannie, Freddie and Lehman, who had put more than $20billion of capital into these companies in the hope of keeping them alive, means that no US bank or insurance company can hope to raise any extra capital in the foreseeable future.

This is true of both domestic investors and the Middle Eastern and Asian sovereign wealth funds, whose trillions of dollars of assets were, until a month ago, viewed as an ultimate safety net for the Western financial system.

Both groups have been so badly burnt by Mr Paulson that they are unlikely to support any refinancing by an American bank. And because governments and central bankers elesewhere, particularly in Britain, have loudly praised Mr Paulson's punitive treatment of shareholders, investors would presumably reach similar conclusions about the folly of helping any British bank.

The upshot is that any US or British bank that suffers unexpected losses or is subject to a powerful speculative attack by stock market short-sellers has nowhere to turn. And that in turn means that the total liquidation of a large financial institution in America, Britain or Europe is now seriously conceivable for the first time.

What makes the situation even more alarming is the perversity of the hardline approach taken by the US and British authorities. The investors who were “punished” by the loss of shareholder wealth in Fannie Mae, Freddie Mac and Lehman were not the speculators who encouraged and financed their reckless lending in 2004-06. They were value-orientated investors betting on a long-term recovery in the US economy and whose willingness to invest on the basis of such recovery could have prevented these companies' collapse.

By wiping out these investors - and instead rewarding the speculators who were trying to drive the share prices of these companies down to zero and thereby put them out of business - Mr Paulson has tilted the balance of power in the financial markets to a point where it is impossible to say for certain that any financial institution will survive.

In short, Mr Paulson has created an open season for speculators to attack financial companies around the world. These attacks are likely to continue and grow in ferocity until the point when governments start supporting not just the deposits and bonds, but also the shares of financial institutions whose survival is essential to keeping their economies running.

But surely it is impossible to suggest such a misunderstanding of basic finance from Mr Paulson, a former chairman of Goldman Sachs? Perhaps.

But then it is worth recalling that Andrew Mellon, the US Treasury Secretary under Herbert Hoover in 1929, was also considered the leading financier of his generation, It is also worth recalling that Donald Rumsfeld was supposed to know something about military strategy and President Bush, a former governor of Texas, about emergency flood control.