WAGES OF SIN?

The ‘global credit crunch’ is only the latest and most virulent among a series of financial crises stretching back to the 1970s and beyond. Yet, more than any of its predecessors, the current crisis is being presented in apocalyptical libidinal terms. Accounts of the crisis and its aftermath tend to be predicated on a sharp contrast drawn between prudent, conservative, risk averse, sober financial practice and a more exuberant, greedy, hedonistic, risky counterpart.

This kind psychosexual analysis is neither new, nor does it represent an accurate depiction of the dilemmas and challenges posed by modern finance. It tacitly suggests, for example, that a return to ‘traditional financial values’ (akin to repeated calls for returns to ‘family values’) would restore calm and normality to a system undermined by the excesses of the perverse few.

This paper argues that although a return to ‘traditional values’ is unlikely to solve any of the current problems, the representation of the crisis and its aftermath is significant. The crisis and its aftermath are embroiled in a wider fundamentalist and puritanical backlash against ‘hedonistic’ capitalism. It represents not a crisis of capitalism as a whole, but a schism within (predominantly) financial communities over the morality and acceptability of ‘risk’. As such, a strongly libidinal language already common within the markets is being adapted and redeployed to create new divisions and exceptions in the context of crisis.