Sounds delightful where you are Ludwig. :)

Insightful comments from everyone. There was an article in this week's Canberra Times which emphasised the need for a "dose of socialism" to save capitalism. Ironic to say the least. The excesses of capitalism can only be tempered by ensuring that some of our most important facets of life are not ruled by profit motive or greed.

Why have our perceptions and mindsets been so brainwashed against the good of socialism in our Social Democracy.

There is hope on the horizon that we will learn from the financial crisis in the US.

Maybe we can forge ahead with a new sense of community, a fair go and caring for those most vulnerable. Rather than the stark consumerism and individualism that has become characteristic of our modern lives.

Pelican

I can only echo your sentiments.

I too hope that the fiasco of 'greed is good' gives way to a more common sense approach to business. That self-regulation has finally been proven not to work.

The sad part is that it will be 'Main Street' which pays for the indiscretions of 'Wall Street'. I would be happier if the true culprits; politicians and corporate 'high-fliers' be branded as the criminals they are. I can't see this happening except at the level of a few scapegoats.

I find it interesting how hesitant many people are at using the word 'socialism' - just goes to show how brainwashed we all have become.

It was Maynard Keynes who stood by the Mixed Economy, which even Adam Smith father of Lassez-faire supported when he said that certain institutions needed to be always owned by government.

Looking at our problems right now, one could well ask why we have accumulated far more multi-billionares than ever?

bushbred

"Looking at our problems right now, one could well ask why we have accumulated far more multi-billionares than ever?"

I agree, it's a good question and it leads to many others. For example, how much tax have these billionaires avoided paying? And how many government projects would that money have funded?

For those of you who mightn't have read Fractelle's link, Michael Moore's take on wealth disparity in the US is worth repeating.

"The richest 400 Americans -- that's right, just four hundred people -- own MORE than the bottom 150 million Americans combined. 400 rich Americans have got more stashed away than half the entire country! Their combined net worth is $1.6 trillion. During the eight years of the Bush Administration, their wealth has increased by nearly $700 billion -- the same amount that they are now demanding we give to them for the "bailout." Why don't they just spend the money they made under Bush to bail themselves out? They'd still have nearly a trillion dollars left over to spread amongst themselves!"

Now if MM could just land a job as advisor to President Obama..."

I don't think we are witnessing the end of capitalism at all. After enduring several weeks when socialist europeans railed at the excesses of American capitalism we now find that the european banks, particularly including scandinavian banks (seen whats happening in Iceland at the moment?) are in more trouble than the Americans.

What we are really seeing is the end of a period that started with Keynes' dictum of "the euthanasia of the rentier". Saving money was actively discouraged, every incentive was used to persuade people to borrow, and every tactic was employed to debauch the lenders. No wonder that no-one saved. Now this doesn't matter if the money borrowed comes from others in the same country, as you can legally defraud those lenders. However borrowing from foreigners is much more dangerous, as they are outside your political control. Readers of the "Asia Times" will know that the strategy known in China as the "nuclear option" is for China to dump $2 trillion in US Treasury Bonds onto the market at the same time, sending interest rates up to 150% and demolishing the US economy.

This current crisis could well be made much more serious by its conjunction with peak oil and the retirement of the baby boomers.

Twice in our history we have had our foreign debt called in, in 1893 and 1931, when the Federal Government had to default on its bonds. It may be about to happen again.

Our current gross foreign debt must be around $1000 billion, mostly in short dated securities, whereas our overseas assets of around $400 billion are much less liquid. Our balance of payments deficit is running at around $70 billion per annum. At least, this time, thanks to John Howard, we have no Federal foreign debt.

Albert Einstein said that the most powerful force in universe was compound interest.

When, Oh when, will people realise that the final word in economics was uttered 150 years ago by Mr Micawber?

Should be fun.

The world has a great opportunity to adjust its economic systems to move to a fairer, sustainable society. The current turmoil gives the incentive to do something. It will be a pity if miss this opportunity.

There are alternatives to relying on consumption for growth. A much more direct way is to rely on investment in ways to save the planet to provide the economic growth we need to fix other problems.

This is outlined in this entry to the google competition on ideas to help people.

http://cscoxk.wordpress.com/2008/10/19/a-competition-for-ideas-to-benefit-the-world/