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"Each individual should allow reason to guide his conduct, or like an animal, he will need to be led by a leash."
Diogenes of Sinope

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Thousand Flowers tapestry (15th Century) - Beaune, France (detail)

Saturday, November 08, 2008

Understanding the financial crisis

Watch this video (about 8 min) which effectively refutes the argument that the current financial crisis was caused by unrestrained laissez-faire capitalism and lack of government regulation. The money quote: "A market system is a system not only of profits, but of profits and losses. Good decisions should yield profits; bad ones should yield losses. Interventionism removes the discipline without which markets cannot work."

(ht: Tom Palmer)

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