Most people believe that the crises of 2008 was due to the private banking sector, to some greedy capitalists, to financial deregulation, and to many other attributes of the free market. As a consequence, they ask for more government regulation. However they are at the wrong path.
This essay follows the tradition of the great Austrian economists, and presents a clear non-technical description of the mechanics of the crisis. The emphasis is on the wrong governmental policies in the U.S.A. and China that led to the American stock market and housing bubbles, and the economic collapse that followed.
By the end of the essay, the reader should have a much better understanding of the crises’ mechanics, and the role that governments and central banks play in such crises. No prior knowledge is assumed on behalf of the reader.
This essay follows the tradition of the great Austrian economists, and presents a clear non-technical description of the mechanics of the crisis. The emphasis is on the wrong governmental policies in the U.S.A. and China that led to the American stock market and housing bubbles, and the economic collapse that followed.
By the end of the essay, the reader should have a much better understanding of the crises’ mechanics, and the role that governments and central banks play in such crises. No prior knowledge is assumed on behalf of the reader.
