The recent economic crisis originating from US and gripping the entire world like a wild fire signifies the defeat of the most acclaimed neo-conservative economic theory propounded by Friedman. “Free markets are inherently stable if left to themselves and depressions and other economic drawbacks are a result of government interventions”, if this was the theory which was so acclaimed and practiced to the core by the American people then why was the Wall Street bailout bill passed by the bush govt??
Why did the so called big names in the financial world need the $700 billion bailout??
Was the capitalist world so insensitive that it did not realize the aftermaths of such an event??
Were these corporate honchos so masked by the revenue figures and the profitability index that they did not pay heed towards the basic funda of lending loans? Lending loan without any collateral, when an average American was having 120% as his household debt, when his entire savings as a percentage of his disposable income was -2% makes absolutely no sense.
Why did the so called big names in the financial world need the $700 billion bailout??
Was the capitalist world so insensitive that it did not realize the aftermaths of such an event??
Were these corporate honchos so masked by the revenue figures and the profitability index that they did not pay heed towards the basic funda of lending loans? Lending loan without any collateral, when an average American was having 120% as his household debt, when his entire savings as a percentage of his disposable income was -2% makes absolutely no sense.
Was it again Victory for Keynes the great and the theory of moderate school of economics …??
