Abstract

This article is to search the underlying reasons of financial crisis and economic cycle. This article, from a new Angle of view(human nature), explain the reasons of economic crisis and its cycle, reveals the interaction of capital greed and financial supervision in the process of economic cycle and the inevitability of economic crisis in capitalism's system. Conclusion: because the progress of science and technology and the development of social economy cannot continue to meet the need of capital greed, capital will collectively seek institutional breakthrough——relaxing on financial supervision Relaxed financial supervision make capital win more profit space, but also lead to the rampancy of capital greed, and then cause economic bubble and economic crisis. Economic crisis makes people to seek the new, strict financial supervision. Economic cycles arise there from.

Highlights

  • Capital has the greedy nature, which is determined by the greed of human nature

  • From on, financial supervision have been accompanying by capital, which make the greed of capital not go so far as to destroy completely the entire society and economy

  • The greed of capital is consistent and unchanging, the same as invariability of human nature, and while financial supervision are strong at times and weak at other times and periodically changing, the disaster caused by the greed of capital periodically come into the world

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Summary

Introduction

The greed of capital has been tending to give a negative impact and disaster on the society and economy, in addition to its positive effect. From on, financial supervision have been accompanying by capital, which make the greed of capital not go so far as to destroy completely the entire society and economy. The periodical change of financial supervision is caused by the greed of capital This America financial crisis has proved the above-mentioned viewpoints. This crisis is caused by the weakening of financial supervision on previous period which has brought rampant greed of capital. In the post-crisis era, financial supervision will periodically tend to be strengthened

The Freed of Capital and the Greed of Human Nature
The Cyclical Changes on Financial Supervision
This relaxation of financial supervision
The rampant process of capital greed on this occasion
The optimistic economy expectations
The burst of the bubble
Findings
Conclusion
Full Text
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