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Manic culture caused eurozone woes

Western economies displayed the same kind of manic behaviour as psychologically disturbed individuals in the run-up to the 2008 credit crisis and it could happen again, a leading professor has warned.

Professor Mark Stein from the University of Leicester School of Management, says bankers, economists and politicians shared a manic culture of denial, omnipotence and triumphalism as they threw caution to the wind.

He says: “Witnessing the collapse of communism, those in power in the West developed the deluded idea that capitalist economies would do best if they eschewed any resemblance to those communist economies, thereby justifying unfettered financial liberalisation and the destruction of the regulatory apparatuses of capitalism.”

He says the consequences of this are still ongoing and are in part to blame for the eurozone crisis.

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