FINANCIAL ENGINEERING,NOT ECONOMIC PHOTOGRAPHY

In recent years, significant studies of finance have explored, on the one hand, the ways in which a specific financial theory might act as a ‘performative utterance’ which through its use makes itself true and, on the other hand, the ways in which discourses and practices of finance might act as continuous performatives that constitute key categories of finance and the financial subject. On first glance, the idea of self-actualising financial theory might seem closer to J. L. Austin's original conception of the performative utterance. However, in this article, I argue for the need to reclaim the Austinian heritage for the broader and more generic understanding of performative finance as well. In this sense, I suggest, a return to Austin reveals the importance of maintaining a focus not only on the potential performance of financial theory, but also those discourses and practices of finance that make up the deeper layers of performativity. I use questions about the role of financial engineering in the sub-prime crisis to illustrate that it is only through a conception of performative finance as self-actualising theories and as discourses and practices that the often obscured layers of financial engineering in society can be fully understood.     

Documenting financial performativity: film aesthetics and financial crisis

Marc Bauder’s finance film, Master of the Universe (2013) won the European Documentary Film Prize in December 2014. Bauder’s film focuses on a series on interviews with a former leading investment banker, Rainer Voss, high up in one of Frankfurt’s deserted bank skyscrapers. Voss’s statements, set against the skyline of Frankfurt’s ‘Mainhattan’ financial sector, allow Bauder to constitute an aesthetic that, I argue, successfully addresses a key problem in moving image studies, namely how to find an appropriate film form to register the workings of contemporary finance. Bauder’s film offers an unusual depiction of the self-constitution and self-understanding of a banker-turned-whistleblower, focusing on Voss’s speech acts of explication and justification. Drawing on Judith Butler’s analysis of performative agency and of the separation of economics and politics through iterative perlocutionary acts, I argue that Bauder’s investigation into the performativity that establishes the autonomy of the financial sector and grants it extensive social power offers a significant aesthetic engagement with financial performativity and contributes to debates about documentary and performativity and about routes to a reconnection of economics and politics.     

Facing future uncertainties and risks through personal finance: conventions in financial education

ABSTRACT

A crucial component of the neoliberal regime is the shift of responsibility for individuals’ financial well-being and security from the state and other public bodies to the individuals themselves, who are required to take responsibility for their own financial decisions and their current and future economic situation. This project of responsibilization presumes a world in which calculative subjects can estimate and manage future risks. Nonetheless, compelled to engage with the financial sphere as a key means of assuring their economic security, individuals are exposed in fact to the fundamental uncertainty of financial markets. In this article, we examine conventions formulated and communicated by financial education programs as cognitive devices geared to prompt individuals to imagine and engage with finance as a site of knowable, calculable and manageable risks, rather than as a site of fundamental uncertainty. Aiming to instill among the general public a particular cognitive frame based on the idea that possible futures are assessable and the risks that they carry can be managed through engagement with financial products and services, these conventions contribute to the normalization of financial logics in everyday life and the incorporation of the general population into the process of financialization.     

The multiple worlds of equity analysts: valuation,volume, and volatility

This paper contributes to the increasing research on how experts within financial institutions co-produce and organize financial markets, and in particular how equity analysts enact stock markets characterized by high volume and volatility. The 20 equity analysts studied give qualitatively different accounts of what, from an outsider's perspective, appear to be very similar work. The analysts understand investment objects, equity markets, and what constitutes good analytical work in qualitatively different ways. This heterogeneity, or multiplicity, could be one source of the, unexplained by orthodox financial theory, ‘excess’ volatility and ‘excess’ trading volume on financial markets. Therefore, the paper complements accounts within heterodox finance theory and sociology-based studies of financial market activities.     

Thoughts from Abroad: Theodor Adorno as Postcolonial Theorist

Abstract

This article shows that the work of the German Marxist philosopher Theodor W. Adorno offers a surprisingly rich resource for postcolonial theory. Adorno's work addresses the world outside Europe more often than one might expect. But it is not so much what Adorno thinks as how he thinks that makes him a postcolonialist. Adorno's philosophy of negative dialectics tracks particular phenomena to the totality of which they are a part. Everything, from the most innocuous details of everyday life to the Holocaust and imperialism, is linked to the world‐encircling, thought‐frustrating and violence‐inducing system of capitalism. But Adorno's characteristic negativity also makes him sensitive to that system's fallibility and its vulnerability to alternatives. The article therefore touches on the normative dimensions of Adorno's moral philosophy. Adorno's work commands attention because of its dialectical style of thinking, its consequent focus on capitalism's intrinsic violence, its belief that effective political action presupposes introspection and a moral capacity for empathy with others' suffering, and its attractive conviction that these aptitudes can be enabled by aesthetic experience. Accordingly, the essay concludes with a reading of the South African writer J. M. Coetzee's novel Disgrace. This article seeks to show that an Adornian postcolonial criticism is as concerned with the gratuitous longevity of capitalism and imperialism as it is inspired by the prospect of erecting a more just and egalitarian social order.     

Re-imagining the future in finance capitalism

ABSTRACT

What is the role of imagination in the constitution of finance capitalism? How do the fictions, myths, and (ir)rationalities of finance shape society's ability to imagine the future in the face of mounting political instability? Well over a decade since the Global Financial Crisis of 2008, today's financialised economies are still marred by stagnation and uncertainty. Against this backdrop, the increasingly speculative nature of economic forecasting, and the accelerated trading of promises of all sorts (from algorithmic and derivative markets to contemporary electoral politics) put the role of imagination centre stage. This special issue contends that, contrary to conventional wisdom, imagining the future is not necessarily equal to ‘fantasising' or to ‘irrational exuberance' or the ‘animal spirits'. Rather, it points to something much more fundamental: the power of finance to produce new social and political morphologies under conditions of radical uncertainty. The articles of the special issue confront these issues by mapping out a novel field of investigation into different, unique types of imagination undergirding finance capitalism in the years since its most recent crisis: from the future-making practices of mineral exploration and agricultural derivative markets, to the imagined futures of financial education programmes, the financialisation of creative work, and the role of future-oriented legitimacy in today’s populist politics.     

Seeing Silence: Filmic and Acoustic Convergences in the Work of Thierry Knauff and Francisco López

Analysing the work of Spanish composer Francisco López and the Belgian film maker Thierry Knauff's 2000 production, Wild Blue: notes à quelques voix, this paper aims to go beyond the Deleuzean methodology that it employs. Deleuze argues, in Difference and Repetition, that artistic production deploys an active form of repetition that creates difference in itself and not a banal Platonic form of repetition based on an originary identity. Finding this process at work in the texts studied, we argue that of vital importance in these works and (although it is not explicitly stated) in Deleuze's own theory here is a reflection on the concept of texture. In deploying an artistic form of repetition that is infused with a deep sense of texture, both López and Knauff distance their works from the documentary realm in which they appear to be grounded. This, however, only increases their potential political efficacy which, rather than working according to extensive and limited, therefore, principles, is transmitted via an intensive mode.     

The performativity of the yield curve

This article explores the wide-ranging influence of the yield curve – a diagrammatic device for representing the term structure of effective interest rates on market-traded debt instruments – in contemporary monetary, financial and economic life. Drawing on the expanding literature on financial performativity, including within the field of cultural economy, the article submits that by virtue of its centrality to multiple, closely interconnected and often highly recursive sets of relations between economies, financial markets and central banks, the yield curve is performative at a range of different levels; and, parsing various different extant understandings of performativity, the article theorizes the particular nature of such performativity in the yield curve context. Against the grain of the bulk of the literature on financial performativity, however, the article also endeavors to connect the yield curve’s performativity explicitly to questions of privilege (the privileges of representation) and power (the power to perform) and their unequal distribution. That is to say, the article argues that to understand the multidimensional performativity of the yield curve, we need to draw out its political as well as cultural economy.     

COMPLEXITY THEORY AFTER THE FINANCIAL CRISIS

Amongst the many calls for regulatory reform voiced in the wake of the global financial crisis, the contributions of Andrew G. Haldane and his colleagues at the Bank of England stand out as some of the most politically and intellectually ambitious. In 2009, Haldane, the Bank's Executive Director of Financial Stability, delivered a speech advocating the integration of complex systems theory (particularly as developed in the field of ecosystems science) into the toolkit of financial regulation. In an effort to understand what is at stake in such calls for theoretical and regulatory regime change, this article traces the prehistory of complex systems thinking in economics. It focuses special attention on two contributions to this minor tradition – the little-known later work of the Austrian neoliberal, Friedrich von Hayek, who elaborated a philosophy of spontaneous economic order on the basis of complex systems theory, and the more recent work of the so-called ‘new institutionalists’, economists who lay claim to the tradition of ‘evolutionary’ philosophy articulated by the neoclassical Alfred Marshall. These exemplary currents in economic complexity theory articulate very similar critiques of the neoclassical orthodoxy yet diverge sharply in their political commitments. This paper situates recent calls to import complexity theory into financial regulation in ambivalent tension between the Austrian and new institutionalist traditions. It concludes with some skeptical reflections on the notion that the financial crisis signals the ‘death of neoliberalism’.     

Haute finance in the not-so-quiet revolution: colonialisme Anglo-Saxonne and the bombing of la Bourse de Montréal

ABSTRACT

This paper examines a situation in which finance is perceived as imperialist – as immanent to, and serving the interests of, a single ‘culture’ in the colloquial sense. The analysis centres on the long-forgotten 1969 bombing of the trading floor of la Bourse de Montréal (the Montréal Stock Exchange), a moment in an intense phase of the Québécois movement for independence from Canada. Because of the way in which the bombers framed the attack, and its political-economic and discursive contexts, the bombing presents an opportunity to think about key features of the relation between finance and cultural domination or imperialism. These features relate to finance’s specific articulation to the future, uncertainty, and, in the words of the séparatistes of the time, cultural ‘destiny’. The paper has three parts. The first describes the bombing of la Bourse and the public, media, and state responses, linking it to Québécois cultural-political geographies at several scales. Part two places the bombing in the longer-run cultural-politicization of finance in the francophone independence movement, to outline a specifically Québecois critique of finance capital. The third part considers finance’s perceived and real connection to, and thus capacity to shape or constrain, the cultural-political construction of collective possibility.     

Ontological violence: Catherine Malabou on plasticity,performativity, and writing the feminine

ABSTRACT

Catherine Malabou's opinion of non-essentialist models of gender identity and art is unambiguous: in her words, they are ‘catastrophic’ to women and to artists (Malabou [2014]. ‘Sujet: Femme'. de(s)générations des féminismes 21, 29-38: 135). What, then, are the implications of Malabou's hallmark concept of ‘plasticity’ on theories of performativity? Has plasticity come to supplant performativity, just as Malabou believes that it has come to supplant Derridean writing? Or if, as Malabou suggests, philosophical concepts are inherently plastic, may we maintain that performativity was always already plastic? In the following article, I read Malabou's work on writing alongside her work on the feminine in order to question how plasticity and performativity might be examined together to theorise the ways in which the discursive and the material interact in the production of subjectivities. By highlighting the performativity at play within Malabou's own writing about the end of writing, I propose that her work challenges her claim that literature cannot deconstruct philosophy. In response to Malabou's anti-essentialist plastic theory of the essence of woman, I underline the parallels between performativity and plasticity and suggest that the two concepts overlap in their mutual configuration of identity and form as mutable and transformable.     

The exhausted futures of neoliberalism: from promissory legitimacy to social anomy

ABSTRACT

The distinction between input-oriented legitimacy and output-oriented legitimacy (Scharpf, Fritz W, 1997. Economic Integration, Democracy and the Welfare State. Journal of European Public Policy, 4, 18–36) has been one of the most influential distinctions in political science. In this article I introduce a third arrangement supporting the legitimacy of political processes which I call promise-oriented legitimacy or, simply, promissory legitimacy. This term refers to the support political authority can gain from the credibility of promises political leaders make regarding future states of the world when justifying decisions and persuading others to follow them in their proposed course of action. Decisions gain support through claims about future development. Legitimacy crises arise if promises that were found credible become discredited and fail to motivate. I develop the concept of promissory legitimacy based on a discussion of what can be considered the most far-reaching political promissory regime of the last forty years: neoliberalism.     

Negotiating Global Finance

This paper delineates how stockbrokers in Mumbai negotiate (contest, reconcile and appropriate) global finance. In recent years, the social studies of finance have grown profoundly, enhancing our understanding of finance across disciplinary boundaries. However, the way in which global finance is practised by local stockbrokers in non-western financial markets has received minor attention. Even though the Mumbai financial market is comparatively small, it is an instructive case due to a transition of financial practices over the previous two decades. Despite these rapid changes, the Bombay Stock Exchange (BSE), the oldest exchange in India, and its ‘traditional’ brokers remain active and relatively influential. Drawing on present-day experiences as well as historical recollections of BSE stockbrokers, this article shows that global finance is not an unambiguous or predictable force, but instead negotiated and thus actively shaped by local stockbrokers.     

The logic of practice in the practice of logics: practicing journalism and its relationship with business in times of technological changes

This paper investigates the workings of institutional logics in practice, by focusing in particular on the interplay between material, practical and linguistic dimensions of practices. In other words, drawing on Bourdieu's sens pratique, the paper explores the logic of practice in the practice of logics through a six months full-time ethnographic study at Il Sole-24 Ore, the largest Italian financial newspaper, between 2007 and 2008. An original conceptual framework is developed to analyse how the logic of journalism is enacted vis-à-vis that of advertising in a setting in which an old technology for news production – print newspaper – coexists with a new one – website – and thus encounters between new and old technological possibilities make workings of institutional logics particularly visible. The findings point out different mechanisms of institutional work dealing with actions that, made possible by new technological possibilities, are potentially, but not necessarily classified as divergent from institutional logics.     

Thawing the North: Mostly Martha as a German-Italian Eatopia

Abstract

The establishment of the European Union, reunification of Germany, and Germany's extension of dual citizenship to immigrant minorities provided challenges to the country's understanding of itself as a nation. In negotiating these changes, debates on citizenship frequently centered on definitions of German culture. Using the concept of Leitkultur (guiding culture), conservatives argued that Germany should reject multiculturalism and stem immigration. This essay analyzes discourses on cultural policy in Germany through a contextual and textual analysis of the film Mostly Martha. In its alignment with aesthetic conventions of the art house food film, Mostly Martha participates in the debate on cultural citizenship and embodies changes in the German film industry that have moved German cinema toward increased commercialism. The film's main character, Martha, is transformed through an intercultural relationship and a trip to Italy. We argue that the film's citation of this well-known tradition of traveling south to redeem oneself and its treatment of ethnic “Otherness” engages in the Leitkultur debate and participates in the transition from national German to transnational cinema. Through the utopian treatment of Italian food, the film fetishizes cultural difference and reaffirms fixed constructs of nation and gender, thereby avoiding an explicitly politicized engagement with intercultural citizenship and identity.     

From Artisan to Partisan

This article confronts the question of what a revitalized financial sector might look like if this were to be reconfigured so as to reproduce first an artisanal-like persona for the financial analyst and craft-like organizational structure for financial businesses, and second if this were to be re-territorialized so that it acted like a partisan rather than, as at present, like a disembedded footloose structure of ‘global finance’. Initially the analysis is pitched at a rather abstract and theoretical level – pulling together artisans, nomads and partisans and tracing their intellectual lineages. But the chapter ends with three very concrete illustrations of actual financial relations in practice that meet some of the criteria for being both artisanal and partisanal.     

How to Make your Audience Suffer: Melodrama,Masochism and Dead Time in Lars von Trier's Dogville

Abstract

Both fans and critics of Lars von Trier's work would likely agree with his capacity to make his audience suffer. This essay canvasses the devices through which the suffering of women in von Trier's melodramas is rendered excruciating to watch. Drawing on Deleuze's influential account of masochism, the first part of the essay discusses how von Trier's film Dogville foregrounds the complicated relationship that suffering has with pleasure and power. The second part of the essay focuses on the temporal dynamics of melodrama and the creative ways in which Lars von Trier disturbs the rhythms of suffering on screen. In particular I argue that von Trier introduces intervals of ‘dead time’ that make the passage of time itself painful to the audience and that open up a larger cultural history of temporal disorder. This part of the essay looks back to von Trier's early experiments with time in Psychomobile 1: The World Clock (2000) and forward to more recent innovative play with time and movement in Melancholia (2011) to make the case for rethinking the temporal dimensions of mediated suffering and the significance of time in the work of Lars von Trier.