[I hear it said all the time that the subprime mortgage was caused by people who lent money to people knowing there was a good chance that it wouldn't get paid back but lent the money anyway because they knew someone else would buy the loan. But why did that next person buy it? Didn't they check to see if the risk was high? Yes, goes the explanation, but they bundled it up with other stuff and sold it to someone else. But why did that person buy it? Eventually someone got left holding the bad loan. Capitalism is Dead (by Russell Roberts)
from Cafe Hayek by Russell Roberts]
["Out of ferocity, avarice, and ambition, the three vices which run throughout the human race," Vico says, "legislation creates the military, merchant, and governing classes, and thus the strength, riches, and wisdom of commonwealths. Out of these three great vices, which could certainly destroy all mankind on the face of the earth, it makes civil happiness" (Element VII, §132, p.62). The New Science]
The Life Divine by Sri Aurobindo is the only reliable life long companion for deciphering the turns of events. [TNM]
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