Whenever something significant occurs in financial markets, or even a major industrial event, people invariably start asking about whether capitalism is doomed. I remember after the BP oil spill in the gulf, one of my old highschool buddies (who’s a great guy, but his ultra-liberal ideals give us some good debating topics) put a thread on Facebook saying “Capitalism must end” or something to that effect. Since he lives in California and he’s one of those artsy types, there were all kinds of high-fives and people railing against America and how Cuba got it right and all this nonsense. I weighed in with how preposterous this notion was and how ironic that he and his hippy friends were venting on none other than…FACEBOOK – a venture that exists purely because of lure of riches that has expanded to its current state by American conventions – an American student at an American university, computer programming, at-risk capital, the internet, mobile technology and all kinds of other contributing factors that exist SOLELY BECAUSE OF CAPITALISM. The irony was lost on these people of course. By simple virtue of being born in America, they’ve already started off life on 3rd base yet they curse the opportunistic environment they find themselves in.
Well, following the recent debt debate, the S&P downgrade leaving 4 AAA Companies with a higher credit rating than the US, the recent market slides and an imploding Euro region, Nouriel Roubini penned a piece asking whether Capitalism is Doomed. While the headline and his mention of Marx being “partly right” drew plenty of controversy last week, his thesis remains pretty much aligned with his usual message – we need to deleverage, divert stimulus to infrastructure, enact more progressive taxation measures and regulate more effectively.
While progressives and “revolutionaries” rejoice at the spectre of crumbling capitalistic support, it’s silly to “blame” capitalism for problems in the world or their current circumstances.
Continue Reading: Is Capitalism Doomed? The Cliche of Our Time
Capitalism,?????
There is NO capitalism. If there was the interest rates would be controlled by the market, not some moron Bernanke, the banks that effed up would have been shut down.
People need to watch “The Corporation” and understand what corporatocracy is.
http://www.imdb.com/video/hulu/vi1301021721/
The bailouts, violations of rule of law, looting and police state interventions that are destroying the way of life of Americans and indeed us all is not Capitalism but FASCISM.
The real issue is that people do not know the difference between the two and the McCorporate media is determined to keep it that way.
Totally agree Davos, OB. Anyone who thinks we have capitalism is completely out of touch.
Capitalism should not be condemned, since we haven’t had capitalism.
— Ron Paul
I believe we have become a fascist state. Liberals who rightfully called Bush a fascist are stunningly silent as Washington tightens it’s grip around the neck of the productive people.
EF
I agree but an even more important question is how do we get back to capitlism. Once you have corruption which has captured the banks, corporations, and government, what can you do to push the balance back. Not easy.
Speaking of rule of law. The supreme court doesn’t help by decisions like citizens united. It seems they have been coopted as well.
I guess time to donate another $100 in fiat bucks to Uncle Ron. It looks more and more like he’s the only way out.
You call this capitalism? I don’t…
Guess How Much Wall Street Borrowed From Fed During Crisis While Americans Went Bust?
Provided by Business Insider’s Zeke Miller, August 22, 2011:
After months of litigation and an act of Congress, Bloomberg has an exclusive on the massive lending by the Federal Reserve to Wall Street banks during the height of the financial crisis in 2008.
On top of the $160 billion in loans from the Treasury Department, banks — including those based overseas — borrowed $669 billion from the Fed, with the Fed’s peak balance at one point reaching a staggering $1.2 trillion.
According to Bloomberg, the $1.2 trillion is about the same amount as homeowners owe on 6.5 million delinquent mortgages, three-times the size of the federal deficit in 2008, and more than the total earnings of federally insured banks in the last decade.
The Fed had refused to disclose the specific sums it lent to the banks in 2008 — but was compelled to by the Dodd-Frank regulatory reform law.
The leaderboard (via Bloomberg):
• Morgan Stanley — $107.3 billion
• Citigroup — $99.5 billion
• Bank of America — $91.4 billion
• UBS — $77.2 billion
• Goldman Sachs —$69 billion
• Deutsche Bank — $66 billion
• Barclays — $64.9 billion
• JP Morgan Chase — $48 billion
• Hypo Real Estate Holding — $28.7 billion
• Societe Generale — $17.4 billion
http://finance.yahoo.com/blogs/daily-ticker/guess-much-wall-street-borrowed-fed-during-crisis-140539126.html
Dave Doe – You are correct, once a country slides down into “third worldism” it tends to stay there. Argentina is a classic example of this.
While I think we’re being led by a group of radical progressives who have made absurd decisions, broadly speaking, why would you NOT consider this a capitalistic society?
And if not, what country is?
Probably none-then at what point in time WAS America suitably capitalistic?
I feel like there’s plenty of opportunity here. There’s plenty of BS to be sure and our future is getting bleaker by the year and I may well be ashamed when our children question what a mess this generation left them. But currently, I’ve started multiple businesses within a week, I can make as much as I have time for blogging, with my small biz, I’m buying rental real estate and while my “real job” is not as secure as it used to be, I feel like I’m at least “employable” elsewhere. This isn’t the reality for many Americans, but we’re still better off than most of the world, right?
But does an oil rig explosion or an S&P downgrade mean “capitalism has failed”? I don’t think so. While things are a mess and getting messier, I wouldn’t want to live anywhere else.