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The End of American Capitalism ?

Discussion in 'Political Discussion' started by reflexblue, Oct 10, 2008.

  1. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism

    The End Of American Capitalism? - washingtonpost.com

    The End Of American Capitalism?

    By Anthony Faiola
    Washington Post Staff Writer
    Friday, October 10, 2008; A01



    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.

    Yet the administration may .......

    I HOPE NOT
     
  2. Real World

    Real World Moderator Staff Member

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    Banks are the one thing I'd save, or at least solidify. They're my #1 concern. If their is a run on banks, like their is on stocks right now, then we'll be in some serious trouble. The market plunge is a run to liquify assets. Imagine that happening to banks. The good news is that commodities are plummetting. Copper took a hit it hasn't seen in 20 years, and oil is now down under $80 a barrell. To me, that's great news for main street.
     
  3. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    I lived in Scandinavia for a number of years and the three countries all seemed to work very well. There was some government ownership of major industry, and the profits were pumped very efficiently back into the economy. There was no homelessness, no extreme poverty, free health care, and an extremely clean environment. I don't think government ownership is necessarily a bad idea, provided there is a strong capitalist market as well. After all, there are certain things that we all legitimately own a stake in: oil and gas, coal, and air rights are examples.

    A hybrid economy, like found in many western countries, works well. The key though is government transparency. Where hybrid economies fail is when governments are able to keep secrets, which in turn fosters corruption. Our government, especially under Bush, has been extremely secretive, and I think that has contributed to the sudden bursting of the financial dam.
     

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