Study shows that West­ern economies dis­played the same man­ic be­hav­ior as psy­cho­log­ic­ally dis­turbed peo­ple in the runup to the 2008 cred­it cri­sis, which could be repeated.

In the two decades to 2008, Western bankers, economists and politi­cians shared a man­ic cul­ture of de­ni­al, om­nip­o­tence and tri­umphal­ism over the col­lapse of com­mun­ism, as they es­ca­lated risky and dan­ger­ous lend­ing and insur­ance prac­tices.

The col­lapse of com­mun­ism jus­tif­ied un­fet­tered fi­nan­cial lib­er­al­iz­a­tion and the de­struc­tion of the reg­u­la­tory ap­pa­ra­tuses of cap­i­tal­ism.

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