Die finanzkrise rührt an die grundlagen der wirtschaftsordnung

Abstract

As the global financial crisis illustrates banks facing the possibility of high profits frequently oust risks and exaggerate an already good business into a boom. This >financial instability< questions the neoliberal confidence in the self regulation of markets. Furthermore the systematic bypassing of the existing rules of prudential regulation indicates that the traditional division of labor between regulating government and profit maximizing companies does not work, as long as the latter don't accept these regulations as being in their own interest. The crisis is also rooted in too much credit flowing on asset markets and causing a bubble. By trading the assets at rising prices paper profits were realized allowing huge incomes. Insofar no wealth was created by these transactions, this part of the financial system equals a rent seeking economy.