Rise and Fall of Capitalism

The Fall of the capitalism

At last that bastion of capitalism is finally seeing red.The country which was the biggest advocate of free and unregulated markets is seeing the virtues of Regulation.

To say that the capital market in the USA is in a Mess will be an understatement

At least one Giant financial institution has bowed out,another is on artificial respiration and quite a few are waiting is queue to receive the dole from the Government

And Remember this is an election year in the Big Apple.And the process of regulation is being carried out with a straight face ,without a murmur from the public,which again shows how uninformed the public opinion there is.

And the media around the world has sought to underplay the events ,because it had hooked on to the American apron strings and was advocating for free markets and capitalism pretty vigorously

What are the lessons that the world at large can learn from these events.

First thing is that the economy cannot be driven by consumption based on borrowing.People must be taught to live within their means although this may bring down the growth Rate. Their are strong messages for the Indian youth and the middle class .Simply aping the spending methods of the western world can be really dangerous , and unfortunately if we were to face a similar situation we may not be able to absorb the shocks ,firstly because we may fall short of resources required for the resurrection,and secondly there will be lots of hindrances from the west and particularly the Americans if we adopt the measures that they have taken up.

Lastly it sometime pays to be primitive and conservative at least in matters Financial

In 1990's the Fall of the Berlin wall was an epochal event,because it signified the end of socialism.And now we are in the Midst of a similar event .This time it is the Fall of another Wall ,THE "WALL" STREET driven economy