Problems in the financial markets

Where will the problems in the financial markets stop?  What will be their impacts? Will there be recessions, or even depressions?  Are the problems in the financial markets an example of what can happen when entities don’t trust each other - if so, is this a graphic example of the importance of trust between entities in non-command economies?

This entry was posted on March 18, 2008 at 10:34 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Problems in the financial markets”

  1. graemebird Says:
    April 12, 2008 at 9:08 pm

    The problems are inherent to fractional reserve which amounts to a government supported ponzi-scheme and counterfeiting racket. Its really as simple as that. The same problems happen in virtual worlds if you allow fractional reserve.

    The combination of 100% backing and “Growth-Deflation” (what I mean by this requires some lengthy explaining) is the only stable financial system and one where massive deregulation in both the financial sector and later the general economy would be workable.

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