Is Denial of the Possibility of Financial Asset Market Failure Responsible for an Economic Holocaust?

25 Pages Posted: 5 Apr 2011

See all articles by Brendan McSweeney

Brendan McSweeney

University of London, Royal Holloway - School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2009

Abstract

Throughout the world every economic and socio-economic indicator has deteriorated. The so-called ‘real economy’ has been deeply contaminated by the most significant global financial crisis for seven decades. The ultimate extent and duration of this rampant degeneration and its longer-term political effects are unpredictable. What caused the crisis? This paper examines a range of suppositions made in theories which deny the possibility of financial asset market failure and identifies ways in which they contributed to the circumstances and actions which created the current crisis.

Keywords: credit crisis, incentives, irrationalities, leverage, light-touch, market failure denial, regulation, shareholder value, short-termism, speculation, toxic assets

Suggested Citation

McSweeney, Brendan, Is Denial of the Possibility of Financial Asset Market Failure Responsible for an Economic Holocaust? (February 1, 2009). Royal Holloway, University of London, School of Management Working Paper No. 0902. Available at SSRN: https://ssrn.com/abstract=1802589 or http://dx.doi.org/10.2139/ssrn.1802589

Brendan McSweeney (Contact Author)

University of London, Royal Holloway - School of Management ( email )

Egham
Surrey, Egham TW20 8DG
United Kingdom

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