When my professor in my eco 101 class gone over free market system, i already know its not going to work. We can't rely on supply and demand any more simply because human beings are born greedy and the era of internet that has made the market even easier to be manipulated. There should be a government body to oversee and stop businesses from becoming too greedy.
It proves FREE MARKET does not work. What leads to this financial catastrophy is the phenonmenon that lenders were too greedy by lending too much money to people that obviously cant pay back.
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"And it's clear that no one is trusting anyone on credit, and THAT is a very serious issue that is still mucking up the gears" What leads to this financial crisis is the discontinuity of trust. What leads to this bubble is also the trust between creditors and borrowers who obviously spend more than they earn and borrow more than they can ever pay back. People are not going to hold on to their promises when they owe too much to a point that they know they can not be able to pay back.
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What leads to this financial crisis is the discontinuity of trust. What leads to this bubble is also the trust between creditors and borrowers who obviously spend more than they earn and borrow more than they can ever pay back. People are not going to hold on to their promises when they owe too much to a point that they know they can not be able to pay back.