Episode 42: Is
the Global Financial Crisis a Liberal Crisis?
Critics of liberalism would like to blame the onset
of the global financial crisis on it. However, Dr.
Felipe Medalla, Foundation for Economic Freedom chairman,
argues otherwise. He points to the weakening of the
rule of law in the United States as one of the main
factors for the crisis. He talks about how the corruption
in its financial system and regulatory failures led
to the meltdown.
Dr. Medalla also discusses how the financial crisis
is a case of an oversimplified belief in the inherent
stability of markets. The U.S. government paid too
little attention to the valid case for basic regulation.
The crisis is an important indicator of the need for
an efficient rule of law to keep markets free and
competitive. However, the danger is that governments
might overcorrect now and smother markets in badly
The music is provided by Dieter
Bachmann and Tchaikovsky.
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