Monday 15 September 2008

Sub-prime crisis

Is this an example of the "anarchy of the market," as the Marxists
would have it?

No, it is a result of central banks increasing the money supply so that mortgage lenders could lend out money they didn't have in reserves in loans they wouldn't have made if they had had to rely on the deposits for loans and weren't likely to be bailed out in case of over extension. It is a product of state intervention - socialism.

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