Global finance's existential crisis is worsened by assumptions that lie at the heart of economic theory. These assumptions are not only adopted in financial economics (high finance) they also provide profiteers an alibi to rip-off with impunity. A 'greed is good' and 'it is OK if one does not break the law' mentality allows for grey areas to be used as profit opportunities and unfair contracts to be drafted that fit within 'law'.
Self-interested cultural paradigms define business rules,operational manuals and legislation. Lacking a truly moral motive, and being legalistic in nature, these rules remain inadequate to ensure fair play in business. Whats needed is a fresher approach to encourage natural fair play.
Reintegrating morality and ethics into all levels of economic study, discourse and policy formulation is a starting point. Adam Smith introduced his economic theses by looking at moral considerations with regards the economy. After morality was encouraged- in Moral Sentiments; capitalism's treatise-The Wealth Of Nations,was presented. As such, more legislation will not bring about more ethical business. Without morality, more rules only encourage more cunning. Lacking ethical interpretation this global financial crisis will not be resolved at its root.
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