I vindicate the thrust of the particularist position in moral deliberation. this purpose, I focus on some elements that seem to play a crucial role in first-person moral deliberation and argue that they cannot be incorporated into a more sophisticated system of moral principles. More specifically, I emphasize some peculiarities of moral perception in the light of which I defend the irreducible deliberative relevance of a certain phenomenon, namely: the phenomenon of an agent morally coming across a particular situation. Following (...) on from Bbernard Williams, I talk of an agent’s character as a factor that contributes to fixing what situations an agent comes morally across. A crucial point, in the debate, will be how an agent confronts the normatively loaded features of his own character when he is engaged in first-person deliberation. (shrink)

This volume addresses relations between macroscopic and microscopic description; essential roles of visualization and representation in chemical understanding; historical questions involving chemical concepts; the impacts of chemical ideas on wider cultural concerns; and relationships between contemporary chemistry and other sciences. The authors demonstrate, assert, or tacitly assume that chemical explanation is functionally autonomous. This volume should he of interest not only to professional chemists and philosophers, but also to workers in medicine, psychology, and other fields in which relationships between explanations (...) based on diverse levels of description and investigation are important. (Listed on Google books). (shrink)

Do doctors fix patients? Or do they heal them? For all of modern medicine’s many successes, discontent with the quality of patient care has combined with a host of new developments, from aging populations to the resurgence of infectious diseases, which challenge medicine’s overreliance on narrowly mechanistic and technical methods of explanation and intervention, or “fixing’ patients. The need for a better balance, for more humane “healing” rationales and practices that attend to the social and environmental aspects of health and (...) illness and the experiencing person, is more urgent than ever. Yet, in public health and bioethics, the fields best positioned to offer countervailing values and orientations, the dominant approaches largely extend and reinforce the reductionism and individualism of biomedicine. The collected essays in To Fix or To Heal do more than document the persistence of reductionist approaches and the attendant extension of medicalization to more and more aspects of our lives. The contributors also shed valuable light on why reductionism has persisted and why more holistic models, incorporating social and environmental factors, have gained so little traction. The contributors examine the moral appeal of reductionism, the larger rationalist dream of technological mastery, the growing valuation of health, and the enshrining of individual responsibility as the seemingly non-coercive means of intervention and control. This paradigm-challenging volume advances new lines of criticism of our dominant medical regime, even while proposing ways of bringing medical practice, bioethics, and public health more closely into line with their original goals. Precisely because of the centrality of the biomedical approach to our society, the contributors argue, challenging the reductionist model and its ever-widening effects is perhaps the best way to press for a much-needed renewal of our ethical and political discourse. (shrink)

This study explores how the democratic deficit of the United Nations can be progressively minimized by the development of a global parliamentary body.

The work is the presentation of a logical theory - Logic in Reality (LIR) - and of applications of that theory in natural science and philosophy, including ...

Why study Aḥmad al-Ghazali -- Initiatic influence -- Literary influence -- Studies on Aḥmad al-Ghazali -- The goal of this book -- Sources for the Aḥmad al-Ghazali tradition -- The life and times of Aḥmad al-Ghazali -- Aḥmad al-Ghazali's spiritual practice -- The roots of Aḥmad al-Ghazali's teachings -- Aḥmad al-Ghazali's metaphysics of love -- Conclusion.

The main idea in this series of essays is that subjective awareness depends upon the intralaminar nuclei of each thalmus. This implies that the internal structure and external relations of ILN make subjective awareness possible. An array of material relevant to this proposal was briefly reviewed in Part I. This Part II considers in more detail some semantic aspects and a bit of philosophic background as these pertain to propositions 0, 1, and 2 of Part I. Part II should be (...) read in conjunction with Part I. (shrink)

Contrary to what he expected, Primo Levi didn’t experience his life after being released from Auschwitz as cheerful and light-hearted. He – like many other survivors – was haunted by an obscure and solid anguish. It took some effort for him to discern the object or source of this anguish. He finally identified it as springing from a sense of shame or guilt in front of the drowned, that is, of those who were exterminated in the Lager. He could not (...) determine, however, whether his shame or guilt was at all rational. In this paper l examine Levi’s shame in light of what I regard as the dominant conception of practical deliberation, according to which principles and emotional detachment are central to our ability to deliberate appropriately. This conception underlies the role that John Rawls ascribes to the original position in the determination of the fundamental principles of justice. Deliberation in the original position is supposed to abstract away from any particular moral situations that one may actually have faced, since these are purely circumstantial elements to be discarded as both irrelevant and misleading for a proper deliberation on the principles of justice. In this paper, I intend both to make a case against the conception of practical deliberation on which Rawls’ original position relies and to vindicate the rationality of Levi’s shame, once some well-entrenched assumptions are brought to light and challenged. (shrink)

There is much that I admire in Richard Moran's account of how first‐person authority may be consistent with self‐knowledge as an achievement. In this paper, I examine his attempt to characterize the goal of psychoanalytic treatment, which is surely that the patient should go beyond the mere theoretical acceptance of the analyst's interpretation, and requires instead a more intimate, first‐personal, awareness by the patient of their psychological condition.I object, however, that the way in which Moran distinguishes between the deliberative and (...) the theoretical attitudes is ultimately inconsistent with a satisfactory account of psychoanalytic practice; mainly because, despite Moran's claims to the contrary, such a distinction is still inspired by a Cartesian picture of the self. I argue that, in the light of his distinction, Moran may emphasize that an agent's psychological dispositions should be permeable to her decisions and projects, but is forced to reject the idea that permeability could go the other way too. I explore Bernard Williams' notion of acknowledgment and Simone Weil's distinction between two notions of necessity, in order to articulate a notion of receptive passivity which may help us to characterize this second direction of permeability. I finally outline why receptive passivity (and, thereby, the double direction of permeability) is crucial in order to identify the goal of psychoanalytic treatment and, derivatively, to understand how a certain kind of awareness may have a significant therapeutic effect. (shrink)

Marta Suria writes *Ella soy yo* as part of her response to the irruption of the memories of the sexual aggressions she had suffered since childhood. She is convinced that the way she narrates her experience will transform and liberate her. How is it at all possible that a certain kind of narrative may transform and li- berate us? In this paper, we will first describe the conception of the relationship between language and experience that lies behind this perplexity and, (...) secondly, we will sketch an alternative conception that will hopefully allow us to account for the transformative power of certain kinds of narratives. This alternative conception will hinge on the idea of expression and on the concept of aspect perception. For this purpose, we will firstly argue that language can be used not only to describe or evaluate our experience, but also to express it; we will, then, defend the view that linguistic or gestural expressions of our experiences not only announce or manifest them, but contribute to shaping and modulating them; finally, we will highlight the transformative, humanizing power of certain expressive uses of language. (shrink)

The received view about rationalizing explanations divides our psychological status into two kinds: beliefs and desires. In *The Retrieval of Ethics*, Talbot Brewer makes a case against this view. In this paper, I examine our experience as readers of *The Castle* by Franz Kafka to support Brewer's critical program, that is, his challenge to the received view. I will argue, however, that a proper analysis of this experience poses a serious problem to Brewer's alternative approach, that is, to his attempt (...) to retrieve our agency thanks to a proper understanding of the role of the good in rationalizing explanations. (shrink)

Robert Dunn, David Finkelstein and Richard Moran have recently contributed to broadening the debate on self-knowledge within the analytic tradition. They raise questions concerning the sort of awareness that may have a healing effect in psychoanalytic therapy, and enhance the relevance to self-knowledge of a deliberative, and practically committed, attitude toward oneself. They reject, however, that self-observation could play a significant role in a strictly first-person attitude toward oneself, since they conceive of it as essentially detached and, in this respect, (...) similar to the kind of attitude that a third party might adopt. I will appeal to Simone Weil's distinction between two sorts obedience and to the contrast between two characters in *The Karamazov Brothers* to elucidate a kind of self-awareness that involves a kind of observation that is constitutively committed. This line of reasoning will also serve to elucidate a fundamental sort of self-knowledge that derives from the subject's capacity to acknowledge her own position within the ethical world and is closely associated to the goal of psychoanalytic therapy. (shrink)

This essay examine Samuel Beckett's *Trilogy to specify the conditions under which we could make sense of practical necessity. Among other things, I will show how Ajax' must is connected to Mol/oy's attempt to visit his mother and to the need to keep talking that both Molloy and the Unnamable share. I will conclude that their dislocated pursuit of certainty reveal - among other things - how the conditions under which practical necessity can be properly experienced have been extirpated from (...) our social and cultural context. Still, the fact that its vestiges nevertheless subsist provide some reason to regard practical necessity as a constitutive aspect of our agency. This will provide a particular sense in which the Unnamable may coherently claim: "I don't know, I'll never know, in the silence you don't know, you must go on, I can't go on, I will go on.". (shrink)

Entiende Christine Korsgaard que sólo una vida gobernada por principios universales responde a nuestra condición de sujetos, pues, de otro modo, quedaríamos reducidos a un amasijo de impulsos inconexos. Quiere, no obstante, alejarse de la imagen del sujeto escindido entre razón y pasión y reivindica la necesidad de unificar cada una de las partes que lo constituyen. Tal unificación deberá descansar, según Korsgaard, en el respeto a principios morales de carácter universal, si bien confía en que una vida gobernada por (...) tales principios permita atender suficientemente los proyectos y compromisos con los que el sujeto se identifica y que constituyen su identidad práctica. En este escrito, trataré de mostrar que la propuesta de Korsgaard no acaba de alejarse de la concepción dividida del sujeto. Argumentaré, en este sentido, que las asimetrías que establece entre la identidad moral y otros tipos de identidades prácticas sólo pueden entenderse desde esa concepción escindida. (shrink)

In this chapter, I focus on the experience of torture and, more specifically, on Jean Améry's account of it in his book *At the Mind's Limits*. There he claims that the loss of confidence in the world is the most devastating effect he experienced as a victim of torture. I thus explore what cosmopolitan aspiration may be revealed by this loss and also discuss whether it is to be discredited as an irrational reaction on the victim's side or instead as (...) proportional to the facts and, consequently, as relevant to the conditions under which a certain cosmopolitan aspiration could be achieved or, at least, favored. (shrink)

at seek to identify the necessary and sufficient conditions for a work to count as fiction. She argues that this goal cannot really be achieved; instead, she appeals to the notion of genre to distinguish between fiction and nonfiction. This notion is significantly more flex- ible, since it invites us to identify standard—but not necessary—and counter-standard features of works of fiction in light of our classificatory practices. More specifically, Friend argues that the genre of fiction has the genre of nonfiction—and (...) only that genre—as its con- trast class. I will refer to the particular way in which Friend elaborates this claim as the contrast view. I have, nevertheless, the impression that this view unnecessarily narrows down the array of perspectives and attitudes from which we can approach works of fiction. I will thus develop a line of reasoning to the effect that the contrast view should rather be construed as picking out a particular way of relating to works of fiction that lies at the end of a continuum defined by different degrees of reflectivity and estrangement. This implies that the contrast view is false as a general claim about how we experience works of fiction, even though this view may appropriately de- pict a specific way of approaching such works. (shrink)

In _Deaths in Venice_ Philip Kitcher explores the bearing that _Death in Venice_ by Thomas Mann may have on 'the oldest and deepest question of philosophy: _how to live_'. In this paper, I will distinguish two ways in which this question can be interpreted. One one reading, it amounts to the question 'how to lead a valuable or worthy life?', whereas on the other it involves a more elusive idea, namely, that a person may breath and walk and still be (...) dead in a relevant sense, that is, from the perspectivo in which being alive does not reduce to biological survival. In my view, Kitcher's reflection on Mann's novella relies on the first, more standard reading. I argue, though, that the being-alive interpretation sheds a more unified light on _Death in Venice_; in fact, I will conclude that the need to shift from one to another interpretation constitutes a fundamental concern in the novella. (shrink)

How certain neural mechanisms momentarily endow with the subjective awareness percepts and affects represented elsewhere is more likely to be clarified when structures essential to Mc are identified. The loss of C with bilateral thalmic lesions involving the intralaminar nuclei contrasts with retention of C after large cortical ablations depriving C of specific contents. A role of ILN in the perception of primitive sensations is suggested by their afference of directly ascending pathways. A role for ILN in awareness of cortical (...) activity is suggested by their widespread afference from cortex, a property shared with striatum. A role for ILN in volition is suggested by their heavy projection to striatum. Unlike striatum, ILN also project widely to almost all neocortex, enabling an effect on ideation; this last property is in common with other structures but none of them has the same direct cortical afference. And passage through the reticular nucleus of ILN efferents to cortex could impact the attention-selective action of nRt. It is suggested that the quickest route to a better understanding of C involves more intensive study of ILN. No other structure seems, in the light of our current knowledge, a more likely site for Mc. (shrink)

In *Austerlitz* by W.G. Sebald, we go through a detailed report of Austerlitz of Austerlitz's life as delivered by him to a narrator about whom we know very little. The story dwells on a wealth of events and situations that Austerlitz experienced at the time as strange or episodic. There is however a constant impulse that, in hindsight, Austerlitz regards as unifying all those events and situations. I will approach the story in *Austerlitz* as the recounting of the process by (...) which Austerlitz becomes aware of the direction of this impulse and engages in a quest for truth the details of which will reveal (and determine) the ethical nature of the impulse that unifies his life. More specifically, I will account for Austerlitz's constant impulse in terms of the inescapability of a certain dynamics of projection that connects a particular situation to which his life is anchored to a more universal concern. (shrink)

Relatar lo ocurrido como invención: una introducción a la filosofía de la ficción contemporánea offers to the Spanish reader an excellent opportunity to get in touch with central aspects in the current philosophy of language and their implications for fiction theory. In his book, García-Carpintero carefully presents the fundamental lines of argument for and against the most relevant views and, on this basis, defends his own analysis of the norm of fiction as well as a neo-Fregean theory of referential terms (...) that averts some traditional objections. My review includes, however, two objections concerning García-Carpintero’s norm of fiction, one relative to the forms of awareness that it seems to presuppose, and the other regarding the nature of the interest associated with the imaginative projects that are constitutive of fictional works. (shrink)

In Authority and Estrangement Richard Moran takes some rather illuminating steps towards getting rid of the Cartesian picture of self-knowledge. I argue, however, that Moran’s crucial distinction between deliberative and theoretical attitude is seriously contaminated by that traditional picture.

The advent of quantum mechanics in the early 20 th Century had profound consequences for science and mathematics, for philosophy (Schrödinger), and for logic (von Neumann). In 1968, Putnam wrote that quantum mechanics required a revolution in our understanding of logic per se. However, applications of quantum logics have been little explored outside the quantum domain. Dummett saw some implications of quantum logic for truth, but few philosophers applied similar intuitions to epistemology or ontology. Logic remained a truth-functional ’science’ of (...) correct propositional reasoning. Starting in 1935, the Franco-Romanian thinker Stéphane Lupasco described a logical system based on the inherent dialectics of energy and accordingly expressed in and applicable to complex real processes at higher levels of reality. Unfortunately, Lupasco’s fifteen major publications in French went unrecognized by mainstream logic and philosophy, and unnoticed outside a Francophone intellectual community, albeit with some translations into other Romance languages. In English, summaries of Lupasco’s logic appeared ca. 2000, but the first major treatment and extension of his system was published in 2008 (see Brenner 2008). This paper is a further attempt to establish Lupasco’s concepts as significant contributions to the history and philosophy of logic, in line with the work of Gödel, general relativity, and the ontological turn in philosophy. (shrink)

Ecology and sustainability are current narratives about the behavior of humans toward themselves and the environment. Ecology is defined as a science, and a philosophy of ecology has become a recognized domain of the philosophy of science. For some, sustainability is an accepted, important moral goal. In 2013, a Special Issue of the journal Sustainability dealt with many of the relevant issues. Unfortunately, the economic, ideological, and psychological barriers to ethical behavior and corresponding social action remain great as well as (...) obvious. In this paper, I propose that a new, non-standard and non-propositional logic of real processes, Logic in Reality grounded in physics applies to the science and philosophy of these narratives and helps to explicate them. Given the ecological role of organizations and institutions, reference is often made to organizational or institutional logics as guides to ecological practice. This paper suggests that these logics are either too abstract or too informal to have an impact in a conflictual world. Recognition of the suggested new, transdisciplinary logical dimension of ecological processes may provide credibility and support to new initiatives in ecology and its philosophy. (shrink)

Recently, social epistemologists have sought to establish what the governing epistemic relationship should be between novices and experts. In this paper, I argue for, and expand upon, Helen De Cruz’s expert-as-teacher model. For although this model is vulnerable to significant challenges, I propose that a specifically extended version can sufficiently overcome these challenges (call this the “extended-expert-as-teacher” model, or the “EEAT” model). First, I show the respective weaknesses of three influential models in the literature. Then, I argue the expert-as-teacher model (...) can overcome its weaknesses by adding what I call the "Authority Clause", "Advisor Clause", and "Ex Post Facto Clause" of the EEAT model. After developing a robust account of these clauses, I entertain three major objections. First, I respond to the charge that the EEAT model is little better than the expert-as-authority model. Second, I respond to a double-counting objection. Lastly, I respond to a pragmatic objection from complexity. (shrink)

The conjunction of process and reality is familiar from the original theory of A. N. Whitehead and the subsequent development of process philosophy and metaphysics by Nicholas Rescher. Classical logic, however, is either ignored or stated to be inappropriate to a discussion of process. In this paper, I will show that the value of a process view of reality can be enhanced by reference to a new, transconsistent logic of reality that is grounded in the physical properties of energy in (...) its various forms. These properties justify a principle of dynamic antagonism or opposition that explicates the phenomena of change at all levels of reality. It can be, accordingly, a preferred logic for understanding the dynamics of real processes. (shrink)

. What are the assumptions that underline the Jewish Law Project? To what extent is this project relates to Zionism as a political program and national vision? Does the secular version of this project and the religious one have anything in common? I argue that aside from the ideological lines that guide the Jewish Law Project, within it rests a reductionist and utopianist stance vis‐à‐vis halakhah which are considered to be obvious. I shall attempt to claim that reductionism and utopianism (...) as tacit assumptions, which are neither explicit nor declared by the carriers of the Jewish Law Project, are definitely not trivial. Then, by detrivializing these two assumptions I will suggest viewing the halakhic‐legal relations defined by the Jewish Law Project through these same parameters—the reductionism of the halakhah and its utopian approach. (shrink)

The work of Luciano Floridi lies at the interface of philosophy, information science and technology, and ethics, an intersection whose existence and significance he was one of the first to establish. His closely related concepts of a philosophy of information (PI), informational structural realism, information logic (IL), and information ethics (IE) provide a new ontological perspective from which moral concerns can be addressed, especially but not limited to those arising in connection with the new information and communication technologies. In this (...) paper, I relate Floridi's approach to another novel perspective, namely, that of an extension of logic to complex real processes, including those of information production and transfer. This non-propositional, non-truth-functional logic (logic in reality (LIR)) is grounded in the fundamental dualism (dynamic opposition) inherent in energy and accordingly present at all levels of reality. The LIR description of the dynamics of processes and their evolution is relevant to what Floridi refers to as the possible non-linguistic aspects of information. It suggests answers to some of Floridi's “outstanding problems” in PI related to the ontological status of information and how it is used in cognition. Floridi's IL retains the formal structure of the doxastic and epistemic logics from which he correctly distinguishes it and is the basis for his conceptual PI. However, LIR fulfills Floridi's implied requirement that logic be regarded as a natural phenomenon dealing with other natural phenomena, recovering its original philosophical function. LIR provides a logical foundation for discussion of ethical questions based on kinds of information that complements IL. Both are reconsiderations of logic that, as Marijuan suggests, may be necessary for the advancement of information technology in an ethical direction (cf. also Brenner). IE focuses on entities as constituted by information in an overall strategy that generalizes the concept of moral agents. LIR and its related ontology naturalize critical aspects of Floridi's theses, especially, the moral value of being as such and a non-separable joint responsibility of individuals and groups. I compare IE to other current approaches to ethics and information technology (e.g., phenomenological and social constructivist). Ethical information is defined “ecologically” in process terms as reality in a physical space (cf. Floridi), with an intentional “valence,” positive and negative, in the morally valued interaction between producer and receiver. LIR is neither topic-neutral nor context independent and can support an ethics involving apparently contradictory perspectives (e.g., internalist and externalist). Ethics involves practical reasoning, and unlike standard logics, LIR supports Magnani's approach to abductive reasoning in rational moral decision making. The basis of moral responsibility and the consequent behavior of individuals involved in information and communications technologies is the same logical–metaphysical principle of dynamic opposition instantiated at other levels of reality. The way moral responsibilities are actively accepted (or not) by individuals supervenes on their primitive psychological structure, which in turn reflects an evolutionary development grounded in the fundamental dualism of the physical world. The paper concludes with some suggestions of areas of philosophical research, such as causality, identity, and the ontological turn, where convergence of the Floridi and LIR approaches might be envisaged. Their overall motivation is the same, namely, the development of strategies for reinforcing and increasing ethical sensitivity wherever possible. The ethical information concept outlined in the paper supports the function of IE, assigned to it by Floridi, of potentially determining what is right and what is wrong. (shrink)

Pavlovian cues predict the occurrence of motivationally salient outcomes, thus serving as an important trigger of approach and avoidance behavior. The amygdala is a key substrate of Pavlovian conditioning, and the nature of its contribution varies by the motivational valence of unconditioned stimuli. The literature on aversive Pavlovian learning supports a serial-processing model of amygdalar function, while appetitive studies suggest that Pavlovian associations are processed through parallel circuits in the amygdala. It is proposed that serial and parallel forms of information (...) processing can be attributed to differential recruitment of amygdalar nuclei, with emphasis placed on the lateral amygdala. (shrink)

While engaging in rich discussion, Conspiracy Theories analyzes current arguments and evidence while providing real-world examples so students can contextualize and visualize the debates. Each chapter addresses important current questions, provides conceptual tools, defines important terms, and introduces the appropriate methods of analysis.

Longlisted for the PEN/E.O. Wilson Literary Science Writing Award A leading neuroscientist offers a history of the evolution of the brain from unicellular organisms to the complexity of animals and human beings today Renowned neuroscientist Joseph LeDoux digs into the natural history of life on earth to provide a new perspective on the similarities between us and our ancestors in deep time. This page-turning survey of the whole of terrestrial evolution sheds new light on how nervous systems evolved in (...) animals, how the brain developed, and what it means to be human. In The Deep History of Ourselves, LeDoux argues that the key to understanding human behavior lies in viewing evolution through the prism of the first living organisms. By tracking the chain of the evolutionary timeline he shows how even the earliest single-cell organisms had to solve the same problems we and our cells have to solve each day. Along the way, LeDoux explores our place in nature, how the evolution of nervous systems enhanced the ability of organisms to survive and thrive, and how the emergence of what we humans understand as consciousness made our greatest and most horrendous achievements as a species possible. (shrink)

A new demarcation is proposed between Natural Philosophy and non-Natural Philosophy—philosophy tout court—based on whether or not they follow a non-standard logic of real processes. This non-propositional logic, Logic in Reality, is based on the original work of the Franco-Romanian thinker Stéphane Lupasco. Many Natural Philosophies remain bounded by dependence on binary linguistic concepts of logic. I claim that LIR can naturalize—bring into science—part of such philosophies. Against the potential objection that my approach blurs the distinction between science and philosophy, (...) I reply that there is no problem in differentiating experimental physical science and philosophy; any complete distinction between philosophy, including the philosophy of science and the other sciences is invidious. It was historically unnecessary and is unnecessary today. The convergence of science and philosophy, proposed by Wu Kun based on implications of the philosophy of information, supports this position. LIR provides a rigorous basis for giving equivalent ontological value to diversity and identity, what is contradictory, inconsistent, absent, missing or past, unconscious, incomplete, and fuzzy as to their positive counterparts. The naturalized Natural Philosophy resulting from the application of these principles is a candidate for the ‘new synthesis’ called for by the editors. (shrink)

'Fear' is used scientifically in two ways, which causes confusion: it refers to conscious feelings and to behavioral and physiological responses. Restricting the use of 'fear' to denote feelings and using 'threat-induced defensive reactions' for the responses would help avoid misunderstandings about the brain mechanisms involved.

Fact checking has become a prominent facet of political news coverage, but it employs a variety of objectionable methodological practices, such as treating a statement containing multiple facts as if it were a single fact and categorizing as accurate or inaccurate predictions of events yet to occur. These practices share the tacit presupposition that there cannot be genuine political debate about facts, because facts are unambiguous and not subject to interpretation. Therefore, when the black-and-white facts—as they appear to the fact (...) checkers—conflict with the claims produced by politicians, the fact checkers are able to see only (to one degree or another) “lies.” The examples of dubious fact-checking practices that we discuss show the untenability of the naïve political epistemology at work in the fact-checking branch of journalism. They may also call into question the same epistemology in journalism at large, and in politics. (shrink)

ABSTRACT The main cause of the crisis was the behavior of the banks—largely a result of misguided incentives unrestrained by good regulation. Conservative ideology, along with unrealistic economic models of perfect information, perfect competition, and perfect markets, fostered lax regulation, and campaign contributions helped the political process along. The banks misjudged risk, wildly overleveraged, and paid their executives handsomely for being short‐sighted; lax regulation let them get away with it—putting at risk the entire economy. The mortgage brokers neglected due diligence, (...) since they would not bear the risk of default once their mortgages had been securitized and sold to others. Others can be blamed: the ratings agencies that judged subprime securities as investment grade; the Fed, which contributed low interest rates; the Bush administration, whose Iraq war and tax cuts for the rich made low interest rates necessary. But low interest rates can be a boon; it was the financial institutions that turned them into a bust. (shrink)