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Does this = the end of capitalism as we know it?

When a government has to step in to nationalise one ailing bank, it's big news. When a government steps in to nationalise two ailing banks, it's even bigger news. But when a government tries to splash out $700bn to 'effectively nationalise' a whole array of toxic mortgages and securities, capitalism's cornerstones of weak regulation and a self-equilibrating market start looking a little shaky.

Given this is precisely what the US government had in mind under the failed Troubled Asset Relief Programme (TARP), where do we go from here? Germany's finance minister has already called the end of Anglo-Saxon capitalism and the death of the US's superpower status. Free market principles look as passé as Marxian ideology in the late 1990s.

Can capitalism bounce back? Or have recent events buried it for good? Your comments are welcomed below.

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AUTHOReFinancialCareers UK Insider Comment
  • Mi
    MiKa
    21 October 2008

    I agree, like it or not capitalism is about greed with a human face(social corporate responsibility). since it's meant to be laissez faire it's hard to keep greed in check. in the end the fittest survive but then this could turn into a very unhealthy monopoly. but i don't think it is the ned of capitalism. perhaps the end of capitalism as we know it

  • ko
    kovolo
    7 October 2008

    Matrix Reloaded

  • Ja
    Jazmaz
    6 October 2008

    Well weitogo - what's wrong with simplicity? Isn't that the reason why things are go wrong- because there's not enough simplicity in evidence?

    Anyway, referring to my point, I am not justifying greed, however, nor do I think its evil (which is a very judgemental and backwards method of viewing natural animal instincts).

    However, what I am trying to illustrate is that a balance of greed, (like a balance of everything) is required for a competitive "survival of the fittest" society to progress for the good.
    That does not equate to my thinking that bankers can exploit people. Additionally, like death, greed is not curable. It can only be regulated.

  • we
    weitogo
    3 October 2008

    Such a simplistic way of looking at greed and exploitation. Basicly, you are saying everybody is evil and let us indulge in it whenever we can. That's exactly the kind of undefendable excuse that ecourages wall street high flyers to bring down the economy.

    While humans are not flawless, we should also remember that we are capable of being compassionate, pursuing justice and fairness.

    Maybe some individuals are more capable than others, therefore should be encouraged for high achievements and rewarded accordingly. But forgetting that as a society we are interdependent on each other can lead to excessive ego, demand for more that one deserves and unwillingness to give others the credit for one's achievement.

    Absolute individualism is illusionary, self-fulfilling and dangerous.

  • Ja
    Jaz
    2 October 2008

    Capitalism is greed and a balance of greed (like a balance of everything) is healthy for society. Greed is part of survival.

    However, unregulated greed and uncapped capitalism leads to exploitation, and people have been exploited for years and have exploited others for years.

    We all exploit each other in our won way. The rich, by stealing from the poor, the Benefit Scrounges / unemployed single mothers from the taxpayer, the government from its people... and so on...

    That will not change- only a new kind of exploitation.

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