Via wood s lot, k-punk on Barbara Ehrenreich's How Positive Thinking Wrecked the Economy:
If the magical thinking that Enherenreich decries cannot be considered only delusional, it's because, in the markets, it's not possible to separate out beliefs from their objects. Beliefs don't register the true or falsity of propositions; rather, in the classic hyperstitional self-fulfilling loop, beliefs themselves determine value (and its destruction, as this meta-warning in The Economist points out). "Realism" isn't an available orientation. Moreover, the loop works both ways: as Robert Shiller pointed out in Irrational Exuberance, booms produce the euphoric psychological states necessary for their own maintenance (more...)
A considered and detailed debunking of the term "confidence" really needs to take place. That the global economy is in such tatters because of a lack of "confidence", a lack of faith in other words, is astonishing proof of the validity of Marx's theory of reification, but beyond that it shows that a profound irrationality sits at the heart of the global social system. A social system that claims it can never be bettered or changed or destroyed is, it clearly turns out, based almost entirely on our faith in it! The astonishing amount of energy -- and money -- being mobilised by governments, politicians and journalists to try to keep us keeping the faith shows clearly that it is time for us all to dream again of better worlds.