08 July 2011

MARKET FUNDAMENTALISM



It is not from the benevolence of the butcher, 
the brewer or the baker, 
that we expect our dinner, 
but from their regard to their own self interest. 
We address ourselves, 
not to their humanity but to their self-love, 
and never talk to them of our own necessities but of their advantages.
 .
Adam Smith
 .
Fundamentalists believe that markets tend towards equilibrium 
and the common interest 
is best served by allowing participants to pursue their self-interest. 
It is an obvious misconception, 
because it was the intervention of the authorities 
that prevented financial markets from breaking down, 
not the markets themselves. 
Nevertheless, 
market fundamentalism emerged as the dominant ideology in the 1980s, 
when financial markets started to become globalized
and the US started to run a current account deficit.
 .
George Soros


The great enemies of capitalist stability 
have always been 
war
and 
depression.
.
 Paul Krugman


.
Getty Image
.

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