On the Financial Crisis

and lessons we need to learn from it.  This looks like a very good address by Vaclav Havel.  Some excerpts:

...I sense behind all of this not only a globally spreading short-sightedness, but also the swollen self-consciousness of this civilisation, whose basic attributes include the supercilious idea that we know everything and what we don’t yet know we’ll soon find out, because we know how to go about it. We are convinced that this supposed omniscience of ours which proclaims the staggering progress of science and technology and rational knowledge in general, permits us to serve anything that is demonstrably useful, or that is simply a source of measurable profit, anything that induces growth and more growth and still more growth, including the growth of agglomerations.

But with the cult of measurable profit, proven progress and visible usefulness there disappears respect for mystery and along with it humble reverence for everything we shall never measure and know, not to mention the vexed question of the infinite and eternal, which were until recently the most important horizons of our actions.

We have totally forgotten what all previous civilisations knew: that nothing is self-evident...

Most economists relied directly or indirectly on the idea that the world, including human conduct, is more or less understandable, scientifically describable and hence predictable. Market economics and its entire legal framework counted on our knowing who man is and what aims he pursues, what was the logic behind the actions of banks or firms, what the shareholding public does and what one may expect from some particular individual or community.

And all of a sudden none of that applied. Irrationality leered at us from all the stock-exchange screens. And even the most fundamentalist economists, who – having intimate access to the truth – were convinced with unshakeable assurance that the invisible hand of the market knew what it was doing, had suddenly to admit that they had been taken by surprise.

I hope and trust that the elites of today’s world will realise what this signal is telling us.

In fact it is nothing extraordinary, nothing that a perceptive person did not know long ago. It is a warning against the disproportionate self-assurance and pride of modern civilisation. Human behaviour is not totally explicable as many inventors of economic theories and concepts believe; and the behaviour of firms or institutions or entire communities is even less so...