Don’t blame capitalism for the global financial crisis
It is the management of the financial system that deserves scorn for today’s turmoil, not the financial system itself.
Appeared in print on 09.10.2008
The demands for more regulation and control of the financial sector are predictable amid the turmoil in world markets – but they are wrong. The cause of the crisis was not fatal flaws in capitalism. The culprits were politicians forcing the banks to give out bad loans, monetary authorities flooding the West with cheap credit, and regulators asleep at the wheel.