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Originally Posted by aegyptos  You and your so-called market socialism are part of failed materialist ideology. Joseph Stiglitz was on Book TV the other day and he said 95% of economists consider Milton Friedman correct and that the free market argument has driven the materists underground. Obviously correct. |
Low level attempt dear chap. Please try to keep to the issues raised by the topic.
Consider, for example, the housing market. I'd argue that instabilities will always occur because of the link between the welfare state and housing demand. Simply put, countries with less generous systems where old age poverty is a concern are more likely to rely on owner occupation. Given capital market imperfection, this will always ensure the risk of mortgage market instabilities. Bounded rationality is not behind the problem.