Why Business Schools Are to Blame for the Crisis

Amid all the pomposity surrounding discussions of the credit crisis ("capitalism is over!", "hang anyone with a pinstriped suit!") it is easy to forget what truly triggered the malaise. Simply put: A tiny bunch of guys (some gals, too) inside a handful of financial institutions made hugely leveraged, often complex, massively sized bets on the health of the (mostly U.S.) subprime housing market. As the latter inevitably turned sour, those bets inevitably sank the punters, and as these behemoths floundered, so did the financial system and thus the economy at large.

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