Greed of financial institutions, poor assessments of rating agencies, massive issuing of insurance for credit risk covering, long-term inadequate monetary policy and poor regulations, on one hand, with simultaneous investments on the basis of wrong assumptions, on the other, are direct causes of financial crisis starting from the American market in 2007. It is concluded that occurred crisis is not a representation of the market or capitalism failure but a correction of market or of wrong market expectations caused by ignorance. After several decades, Keynes and principal postulates of his...
Greed of financial institutions, poor assessments of rating agencies, massive issuing of insurance for credit risk covering, long-term inadequate mone...