Monday, September 14, 2009
Flaw in Free Markets: Humans
This article discusses why Alan Greenspan was wrong to think that markets would protect themselves from financial risk, and how Adam Smith's invisible hand theory played into Greenspan's false assumptions. This is a great read about Smith's invisible hand argument and what is required for it to work. This article seemed perfect for our class to read.
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I think this is a very relevant article for the material we have covered. Not too many times you read about how increased competition and less regulations can lead to the demise of investors, even despite the risks they know that they are taking upon themselves.
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