Behind the 2008 Capital Market Collapse

Arbeitspapier

Greed and the unethical behavior of financial institutions obviously played a part in the collapse of the world capital market in 2008. But, this paper argues that the main culprits are the neo-liberal ideology (requiring ever smaller gov-ernments and privatization) and the flawed theories of risk assessment. It also finds that given the fact that market economies are fractal structures, the objective assessment and / or the quantification of risks is not even possible. It concludes with some recommendations as to how to avoid future collapses.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EERI Research Paper Series ; No. 17/2008

Classification and Topics

• Classification: Wirtschaft ; Investment; Capital; Intangible Capital; Capacity
• Subject: Efficiency and self-correction in market economies ; Linear-positive and non-linear modelings ; creative destruction of coefficients ; determinism and randomness ; and risk assessment

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dominique, C-René
• Event: Veröffentlichung
• (who): Economics and Econometrics Research Institute (EERI)
• (where): Brussels
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/142528
• Last update: 10.03.2025, 11:45 AM CET