According to industry experts, the recent financial crisis (2007-2009) has exposed the moral bankruptcy of the society. Along with exposing the risks of the society’s economic model, the financial crisis has also exposed the moral insufficiency of market fundamentalism. As per experts, materialism has engulfed moral commitment of people.

Everyone is aware about the risks undertaken by the financial sector and their outcome. However, little has been written about moral bankruptcy that is, the moral deficit of the people, which is also a major contributing factor to the economic crisis. Experts believe that it is very hard to correct the moral deficit that has been exposed because of the economic crisis.

According to experts, though the government should play a major role in solving the crisis, yet there is also a need for collective action. Over time, along with shaping the economy, the markets have also shaped the society in which materialism dominates moral commitment. Moreover, the rapid growth is also not at all sustainable, both socially and environmentally.

The economic crisis has also revealed the difference between the rich and the rest of the society. The income of most of the Americans has stagnated over the past two decades. However, the people at the middle and at the bottom of the pyramid have been encouraged to live beyond their means by borrowing and to consume as if their income has increased. This made the housing bubble possible.

However, the country has been living beyond its means that needs to be changed in order to improve the situation. As the real median income is already down since 2000, it is the responsibility of the people at the top to make some adjustments so that the high cost of living is not imposed on the rest of the society.

The mortgage market meltdown is one of the prime reasons behind the economic crisis. As per the investment bankers, they were deceived by the people, who had sold them mortgage loans. However, the investment bankers themselves encouraged the mortgage originators to enter into the subprime mortgage market. This is because the bankers expected to get higher return from the subprime mortgage market. So, it is very much necessary and a part of moral behavior to accept the blame that one has committed. Then only the fault can be rectified and prevented from occurring again in future.

Experts believe that the failure in the financial system in the recent past may lead to much broader failures in the economic system and society in the future. It is quite obvious that there would be changes to prevent any such crisis from occurring again. However, experts are uncertain whether or not such changes would be in the right direction. That is, how much the changes would benefit the economic system and society as a whole.