Wednesday, May 28, 2008
Is the free market dead? Even its most avid supporters doubt it is working.
Myriad controls stifle freedom in practice
Is the free market dead? Even its most avid supporters doubt it is working. The credit crunch is undermining their faith. Martin Wolf, the chief economics commentator of the Financial Times, declared that: "Friday, March 14 2008 was the day the dream of global free market capitalism died". That was when America's Federal Reserve decided to rescue Bear Stearns. He also quoted Josef Ackermann, Deutsche Bank's chairman, saying: "I no longer believe in the market's self-healing power".The credit crunch shows how quickly rhetorical support for the free market can evaporate. Trouble at Bear Stearns and Northern Rock both brought massive intervention by the public sector.
Add a comment