What caused the financial crisis?


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.

The place to begin is in the mythological “state of nature,” the world before governments. more> http://tinyurl.com/6u45pdv

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