ABSTRACT
In this chapter, the author shows two major categories: one is the deficiency of the market system and the second is the deficiencies of the non-market sector of society. The first is a quite fundamental critique of our interpretation of how financial markets operate. The prevailing view based on economic theory is that financial markets tend towards equilibrium. Financial markets have a tremendous influence on what happens in each particular country. In the financial markets we have trillions of dollars moving around the world. Present decisions made in the financial markets actually shape the future, which the financial markets are supposed to discount. If financial markets are inherently unstable, then stability has to be an objective of public policy. The instabilities and inequalities of the capitalist system could feed into nationalistic, ethnic and religious fundamentalism. It is exactly why we should prevent a return to that kind of fundamentalism by correcting the excesses of market fundamentalism.
