How many of the world’s citizens understand what began a year ago as ‘problems in the sub-prime mortgage market,’ was rapidly promoted into a ‘credit crunch’ and has since become a ‘global financial crisis’ and ‘looming depression?’
After repeated analysis and explanations from economists, journalists, politicians and financiers we have all got the point that something went badly out of control. Many people vaguely feel that unchecked greed was largely to blame. The general climate of opinion seems to be that Reagonomics is over; or, as Nicolas Sarkozy put it, (grabbing the chance to immortalise a French sound bite that Anglophones would understand) ‘Laissez faire, c’est fini.’ Even The Economist has pronounced that ‘Capitalism [is at] at Bay.’ New phases of capitalism, nearly everyone now agrees, need new rules. But how many of us grasp in any detail what actually went wrong, and thus what rules are needed?