November 21, 2008

Even Before the '87 Stock Crash...

...Bloomberg.com reports that then Cardinal Ratzinger predicted a global collapse:
German-born Ratzinger in 1985 presented a paper entitled ``Market Economy and Ethics'' at a Rome event dedicated to the Church and the economy. The future pope said a decline in ethics ``can actually cause the laws of the market to collapse.''
Here's the full text of Cdl Ratzinger's article (via American Papist). (Haven't read that yet but look forward to doing so soon.)

Put not your trust in market timers (*cough* *cough* Bob Brinker!). It's not that I'm upset about Brinker being wrong so much as my own gullibility. I thought that the unpredictability of the markets was mostly linked to a possible massive terrorist attack of some sort, rather than a slip in ethics. (What's ironic is part of this slip of ethics was trying to get people who couldn't afford a house into houses. The road to hell is paved with good intentions & all.)

The problem with markets so globalized and interconnected is that it would seem to requires a high-wire act in terms of ethics. A few bad cooks will spoil the broth since the whole thing is based mostly on trust.

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