The Global Crisis Is Caused By Pathologies

Playing By The Rules, One Does The Best He Can, Irrespective Of The Social Consequences. Whereas In Making The Rules, People Ought To Be Concerned With The Social Consequences And Not With Their Personal Interests.

Globalization Has Rendered The World Increasingly Interdependent, But International Politics Is Still Based On The Sovereignty Of States.

I Contend That Financial Markets Never Reflect The Underlying Reality Accurately; They Always Distort It In Some Way Or Another And The Distortions Find Expression In Market Prices. Those Distortions Can, Occasionally, Find Ways To Affect The Fundamentals That Market Prices Are Supposed To Reflect.

This Is The Joint Responsibility Of Everyone Who Was Involved In The Introduction Of The Euro Without Understanding The Consequences. When The Euro Was Introduced, The Regulators Allowed Banks To Buy Unlimited Amounts Of Government Bonds Without Setting Aside Any Equity Capital. And The European Central Bank Discounted All Government Bonds On Equal Terms. So Commercial Banks Found It Advantageous To Accumulate The Bonds Of The Weaker Countries To Earn A Few Extra Basis Points.

Political Debate Is More Interested In Manipulating The Truth, Than Finding The Truth.