Absence of Ethics

The credit crisis is a financial crisis which started in the summer of 2007. The crisis has affected the world economy with major consequences like job losses, value decrease of houses and lower interest rates on loans. The main cause of the crisis was the American mortgage market. The problems were spread out to other financial markets in America. America is a very important  country on the international market and because of this countries from all over the world get involved in the crisis what resulted in a worldwide crisis. 
 According to George Möller (2012), the problem of the financial crisis starts with the behaviour of people. He also calls it the behaviour of the beast named human. Nowadays, people have become too selfish, without taking other people in account. People are harmed by selfishness from others. Möller states that ethic is an important topic that need to be considered. Economists must again give judgment about good and bad behaviour. Now, there is not a clear moral framework that determines what is distinctive behaviour. This point of view contradicts the opinion of  Ayn Rand,  a famous American philosopher. Rand propagated selfishness, with the well-known sentence greed is good (Achterhuis, 2010). According to Rand, people must be greedy because it will bring you further and will be beneficial for others as well.  
 John Taylor (2009) argues that the economic science has become too mathematical. Human behaviour is disappeared out of the theory. Whereas, behaviour is the source of every crisis. According to Taylor crisis are normal and instructive but the current crisis is created by people. Bankers and economists trusted too much on the financial models which they created themselves. The financial models are used for large scale stock exchange and there for affects the worldwide economy. 




References: 
Achterhuis, H., 2010. De utopie van de vrije markt. Lemniscaat b.v.
Möller, G., 2012. Waardenloos. Barnyard Publishing. 
Taylor, John B., 2009. The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong. NBER Working Paper,  No. 14631.