Markets and Rules: The Case of the Global Credit Crunch
Neoliberal thought assumes that a free market economy promotes the application of new techniques in the most efficient way. In the financial world it especially implied the introduction of sophisticated techniques of risk management. A more realistic view says without any other control mechanism free markets produce chaos rather than order. To achieve some justice and prosperity society first needs to establish some order. More prudent behavior of the economic elite, more secure codes of conduct, and a stricter legal framework of rules are necessary conditions for a financial system that fulfils its societal function well. Only then can the world continue working on a steady improvement in terms of justice and prosperity.