Slavoj Zizek Quote
The last statement reveals more than may appear at first glance: it indicates that Greenspan's mistake was to expect that the lending institutions' enlightened self-interest would make them act more responsibly, more ethically, in order to avoid short-term self-propelling cycles of wild speculation which, sooner or later, burst like a bubble. In other words, his mistake concerned not the facts, the objective economic data or mechanisms; it concerned rather the ethical attitudes generated by market speculation—in particular the premise that market processes will spontaneously generate responsibility and trust, since it is in the long-term self-interest of the participants themselves to act thusly. Clearly, Greenspan's error was not only and not simply one of overestimating the rationality of market agents—that is, their ability to resist the temptation of making wild speculative gains. What he forgot to include in the equation was the financial speculators' quite rational expectation that the risks would be worth taking, since, in the event of a financial collapse, they could count on the state to cover their losses.
The last statement reveals more than may appear at first glance: it indicates that Greenspan's mistake was to expect that the lending institutions' enlightened self-interest would make them act more responsibly, more ethically, in order to avoid short-term self-propelling cycles of wild speculation which, sooner or later, burst like a bubble. In other words, his mistake concerned not the facts, the objective economic data or mechanisms; it concerned rather the ethical attitudes generated by market speculation—in particular the premise that market processes will spontaneously generate responsibility and trust, since it is in the long-term self-interest of the participants themselves to act thusly. Clearly, Greenspan's error was not only and not simply one of overestimating the rationality of market agents—that is, their ability to resist the temptation of making wild speculative gains. What he forgot to include in the equation was the financial speculators' quite rational expectation that the risks would be worth taking, since, in the event of a financial collapse, they could count on the state to cover their losses.
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About Slavoj Zizek
He is the international director of the Birkbeck Institute for the Humanities at the University of London, Global Distinguished Professor of German at New York University, professor of philosophy and psychoanalysis at the European Graduate School and senior researcher at the Institute for Sociology and Philosophy at the University of Ljubljana. He primarily works on continental philosophy (particularly Hegelianism, psychoanalysis and Marxism) and political theory, as well as film criticism and theology.
Žižek is the most famous associate of the Ljubljana School of Psychoanalysis, a group of Slovenian academics working on German idealism, Lacanian psychoanalysis, ideology critique, and media criticism. His breakthrough work was 1989's The Sublime Object of Ideology, his first book in English, which was decisive in the introduction of the Ljubljana School's thought to English-speaking audiences. He has written over 50 books in multiple languages and speaks Slovene, Serbo-Croatian, English, German, and French. The idiosyncratic style of his public appearances, frequent magazine op-eds, and academic works, characterised by the use of obscene jokes and pop cultural examples, as well as politically incorrect provocations, have gained him fame, controversy and criticism both in and outside academia.