By Jonathan Schonsheck – Despite the good efforts of government commissions and individual experts, the proverbial “root cause” of the crisis has yet to be unearthed.
In my judgment, the root cause is actually a synergism between two distinguishable elements. The first element is the devotion of many individuals — in government, in business and in the academy — to Rational Market Theory. The second element is the pursuit of policies and legislation that made it impossible for the markets to operate as imagined within Rational Market Theory.
- Financial crisis could turn the tide against unrestricted capital flows (theneteconomy.wordpress.com)
- The Subprime Crisis: Deregulating Derivatives and Making Messy Money! (myteeaphrodite.wordpress.com)
- The Nature of the State (thewizardslab.wordpress.com)
- How Housing Policy Caused the Financial Crisis: Q&A with AEI’s Peter Wallison (reason.com)
- Deeper Inquiry Of Greg Smith’s Assertions: Might Goldman Sachs Have Intentionally Precipitated The Financial Crisis? Todd Ganos, Forbes
- Moral decay, Salt Lake Tribune