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Financial Crisis

What we have experienced is not the failure of capitalism and markets, but the failure of attempts to manage markets and the economy. The Western lifestyle of consumption and borrowing at the expense of saving and producing was never going to be sustainable. It seems likely that the credit crunch was triggered by politically correct interference in the markets in the US, such as the Community Reinvestment Act. The giant Ponzi scheme/pyramid scheme that is investment banking is now being paid for by those at the bottom of the pyramid, the ordinary public. An unholy alliance between the bankers and the governments led to the bailing out of certain investment banks.