The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism. Since the 1930s, U.S. banks were the flagships of American economic might, and emulation by other nations of the fiercely free-market financial system in the United States was expected and encouraged. But the market turmoil that is draining the nation's wealth and has upended Wall Street now threatens to put the banks at the heart of the U.S. financial system at least partly in the hands of the government. The Bush administration is considering a partial nationalization of some banks, buying up a portion of their shares to shore them up and restore confidence as part of the $700 billion government bailout. The notion of government ownership in the financial sector, even as a minority stakeholder, goes against what market purists say they see as the foundation of the American system. [...] Given that the United States has held itself up as a global economic model, the change could shift the balance of how governments around the globe conduct free enterprise. Over the past three decades, the United States led the crusade to persuade much of the world, especially developing countries, to lift the heavy hand of government from finance and industry. But the hands-off brand of capitalism in the United States is now being blamed for the easy credit that sickened the housing market and allowed a freewheeling Wall Street to create a pool of toxic investments that has infected the global financial system. Heavy intervention by the government, critics say, is further robbing Washington of the moral authority to spread the gospel of laissez-faire capitalism.
The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism.
Since the 1930s, U.S. banks were the flagships of American economic might, and emulation by other nations of the fiercely free-market financial system in the United States was expected and encouraged. But the market turmoil that is draining the nation's wealth and has upended Wall Street now threatens to put the banks at the heart of the U.S. financial system at least partly in the hands of the government.
The Bush administration is considering a partial nationalization of some banks, buying up a portion of their shares to shore them up and restore confidence as part of the $700 billion government bailout. The notion of government ownership in the financial sector, even as a minority stakeholder, goes against what market purists say they see as the foundation of the American system.
[...]
Given that the United States has held itself up as a global economic model, the change could shift the balance of how governments around the globe conduct free enterprise. Over the past three decades, the United States led the crusade to persuade much of the world, especially developing countries, to lift the heavy hand of government from finance and industry.
But the hands-off brand of capitalism in the United States is now being blamed for the easy credit that sickened the housing market and allowed a freewheeling Wall Street to create a pool of toxic investments that has infected the global financial system. Heavy intervention by the government, critics say, is further robbing Washington of the moral authority to spread the gospel of laissez-faire capitalism.
That's the extent of what I've witnessed in my life in business, but certainly there were other failures of capitalism before that and after That GreatOne. And I have seen lists that show that the trend is similar from after the American Civil War through to then.
Now, I'm not a CentralControl person, for we have proved that we don't have the algorithms for that either, but what is it about capitalism that it gets revered? when most of us are only a few generations from being out of the freaking mines? Maybe because it accommodates more GreedyBastardsTM per capital suck, and more variations on GreedyBastardTechnologyTM.
It doesn't work!!! It needs to get bailed out!!!! Often!!!!
Admit to the need and build the bail-outs into the system, or neuter the greedy bastards who continuously make it go wrong, or declare the greedy bastard of the year as winner, reset the capital clock and start a new game so we don't have to let it get out of hand and destroy people future and daily lives.
</rant> Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
I'm 32 and I remember Black Tuesday very well. "The womb that spawned that thing is fertile yet"
But it is a pity if people are only influenced by their work experience. It would mean a total inability to learn from history, for a start. Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
