A crisis of capitalism?


Flicking through a copy of Dr Madsen Pirie's Freedom 101, I found a prescient paragraph [p.66] on capitalism and the business cycle:

In recent years independent central banks have tried to smooth the business cycle's severities by combining the pursuit of sound money with making credit easier when economic downturn loomed. It has been a precarious act which cannot necessarily be sustained, but this is not a crisis of capitalism either. It may just be problems arising from one type of financial management.

This was written well before most commentators even realised there was a financial crisis.