“Why is the financial crisis of 2008 treated as if it were the first? The World Bank has identified more than 96 previous banking crises and 176 monetary crises since President Nixon introduced the floating exchange regime in the early 1970s (Caprio and Klingebiel, 1996). Even before this period, financial booms and bust cycles were, in Kindleberger’s words, a remarkably “hardy perennial” (Kindleberger, 1978); he inventories no less than 48 massive crashes between the 1637 tulip mania in Holland and the 1929 crash on Wall Street. In short, it may be tempting to consider financial and monetary instability as a given, as part of Schumpeter’s “creative destruction” of
320 crashes from 1637 (~ 0.86 p.a.).
For the last 370 years, there has been on average one crash every 14th month, and as recovery usually takes years this has been a history of continuous disaster. No wonder the Economic Priesthood is pleased with it self.
It is difficult to accept Economics as a Scientific Discipline with such a dismal record of “correction”. – “Facts do not cease to exist because they are ignored.”
The Lost Science of Money
The American Monetary Act (proposed)
Religion, not a science
Surviving without money
The Bank of Happiness
The Shock Doctrine