Saturday, 12 July 2008

Free market failures

This blog has followed free market failures which have caused misery to millions. The free market failure known as the 'credit crunch' has been of particular interest because of its effect on he UK. Now we hear that Freddie Mac and Fannie Mae, the two giant corporations providing 50% of mortgages in the US, are in deep trouble. Of course in a free market these corporations should be allowed to go bust.

But we know that won't happen because that would be a disaster, a disaster not because of the misery it would cause to millions - since when has that ever been a concern of the 'market' - but because it would truly expose the dark underbelly of capitalism and the dodgy banking system which underpins it - and it would turn millions in the west against the free market system. That is the real reason why it cannot be allowed to happen.

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