Lawless Capitalism : The Subprime Crisis and the Case for an Economic Rule of Law

The subprime mortgage crisis has been blamed on many: the Bush Administration, Bernie Madoff, the financial industry, overzealous housing developers. Yet little scrutiny has been placed on the American legal system as a whole, even though parts of that system, such as the laws that regulate high-risk lending, have been dissected to bits and pieces. In this innovative and exhaustive study, Steven A. Ramirez posits that the subprime mortgage crisis, as well as the global macroeconomic catastrophe it spawned, is traceable to a gross failure of law. The rule of law must appropriately channel and constrain the exercise of economic and political power. Used effectively, it ensures that economic opportunity isnOCOt limited to a small group of elites that enjoy growth at the expense of many, particularly those in vulnerable economic situations. In Lawless Capitalism, Ramirez calls for the rule of law to displace crony capitalism. Only through the rule of law, he argues, can capitalism be reconstructed. The Subprime Mortgage Crisis Has Been Blamed On Many: The Bush Administration, Bernie Madoff, The Financial Industry, Overzealous Housing Developers. Yet Little Scrutiny Has Been Placed On The American Legal System As A Whole, Even Though Parts Of That System, Such As The Laws That Regulate High-risk Lending, Have Been Dissected To Bits And Pieces. In This Innovative And Exhaustive Study, Steven A. Ramirez Posits That The Subprime Mortgage Crisis, As Well As The Global Macroeconomic Catastrophe It Spawned, Is Traceable To A Gross Failure Of Law. The Rule Of Law Must Appropriately Channel And Constrain The Exercise Of Economic And Political Power. Used Effectively, It Ensures That Economic Opportunity Isn't Limited To A Small Group Of Elites That Enjoy Growth At The Expense Of Many, Particularly Those In Vulnerable Economic Situations. In Lawless Capitalism, Ramirez Calls For The Rule Of Law To Displace Crony Capitalism. Only Through The Rule Of Law, He Argues, Can Capitalism Be Reconstructed--provided By Publisher. A Revolution In Economics (but Not In Law) -- The Corrupted Corporation -- Animal Spirits And Financial Regulation -- Rigged Globalization -- The Costs Of Economic Oppression -- The Crisis In Crisis Management -- The Potential For An Economic Rule Of Law -- Epilogue. Optimized Legal Infrastructure And The End Of Scarcity. Steven A. Ramirez. Includes Bibliographical References (p. 221-276) And Index.