The Financial Crisis Was Entirely Foreseeable

WE’VE KNOWN FOR THOUSANDS OF YEARS


We’ve known for literally thousands of years [20] that debts need to be periodically written down, or the entire economy will collapse. And see this [21].

We’ve known for 1,900 years [22] that rampant inequality destroys societies.

We’ve known for thousands of years [23] that debasing currencies leads to economic collapse.

We’ve known for hundreds of years [24] that the failure to punish financial fraud destroys economies.

We’ve known for hundreds of years [25] that monopolies and the political influence which accompanies too much power in too few hands is dangerous for free markets.

We’ve known for hundreds of years [26] that trust is vital for a healthy economy.

We’ve known since the 1930s Great Depression that separating depository banking from speculative investment banking is key to economic stability. See this [27], this [28], this [29] and this [30].

We’ve known since 1988 [31] that quantitative easing doesn’t work to rescue an ailing economy.

We’ve known since 1993 [32] that derivatives such as credit default swaps – if not reined in – could take down the economy. And see this [33].

We’ve known since 1998 [34] that crony capitalism destroys even the strongest economies, and that economies that are capitalist in name only need major reforms to create accountability and competitive markets.

We’ve known since 2007 [35] or earlier that lax oversight of hedge funds could blow up the economy.

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