Causes of the current World Economic Crisis: A Successful Snow Job Cover Image
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Узроци текуће глобалне финансијске кризе: магла која је успешно продата
Causes of the current World Economic Crisis: A Successful Snow Job

Author(s): Ognjen Radonjić
Subject(s): Economy
Published by: Nova srpska politička misao
Keywords: debt; speculation; deregulation; exotic financial instruments; crisis

Summary/Abstract: The world economic crises broke out in August 2007. To avoid similar mistakes in the future, the aim of this paper is to find answers to the questions of how and why the crisis broke out and who the main culprits are. We find that the source of the crisis is the continuous process of deregulation which followed the end of the Second World War. In their pursuit for ever-increasing profit, greedy money-lenders created numerous varieties of factitious and very risky debt financial instruments; by using different techniques of stimulating loans they created an illusion that exotic products of financial magicians are safe. Of course, we think that the main culprits are those who enabled flourishing of one of the biggest scams of financial history – irresponsible, well-paid and corrupt regulatory authorities.

  • Issue Year: 17/2009
  • Issue No: 03+04
  • Page Range: 25-54
  • Page Count: 30
  • Language: Serbian