I seriously asked myself this question today.
I thought George Soros made an interesting comparison between our fiasco and the demise of the Soviet Union:
"NEW YORK (Reuters) - Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.
Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.
He said the bankruptcy of Lehman Brothers in September marked a turning point in the functioning of the market system.
"We witnessed the collapse of the financial system," Soros said at a Columbia University dinner. "It was placed on life support, and it's still on life support. There's no sign that we are anywhere near a bottom."
I think that our focus needs to move away from "saving the financial system". Folks the system is dead. You can't revive a patient that has flatlined.
Everyday I sit here and watch the government attempt to juggle 10 balls with 2 arms. Each day another ball is added as another major industry or bank announces that they will fail if they don't get a government bailout. Its only a matter of time before the government drops a ball as it continues to try and juggle this house of cards. If you have ever tried to juggle you know what happens after that.
I think Soros makes a great comparison here. Communism and Capitalism are polar opposites of one another but they both share the same fatal flaw: When either system is taken to the extreme they are doomed for failure.
The total failure of our economic system is what happens when Capitalism goes too far. Just look at the distribution of wealth in this nation. The top 10% own the majority of our country's assets. Personally I find this to be both disgusting and embarrassing. It also tells you we took it way too far.
You know, when you think about it: Is there really that big a difference between Communism and Capitalism? When either system is taken to the extreme the end result is the same. The rich and powerful end up with the majority of the assets. The only difference here is the rich and powerful in Communism are the politicians whereas in Capitalism its the bankers.
I have always believed that you should try and live your life in moderation. Too much of anything can destroy you. Unfortunately, as a nation we are learning this lesson with "capitalism" the hard way.
The system will never be the same folks. Personally, I now want to puke when I hear the word "capitalism". I am sure many of you now share the same view after watching your personal wealth get destroyed by a bunch of fraudsters who took capitalism too far.
I find the whole thing to be so ironic because all of my life I had always believed that capitalism was the greatest thing since sliced bread because that's what I was told growing up. Boy oh boy was that a mistake.
As far as I am concerned, today's form of capitalism can kiss my behind.
The sooner this country lets this house of cards fall the better. The end result is now inevitable. The sooner our leaders recognize this the better off we will all be in the long term because I believe we are a very creative and resilient nation. I know that we are smart enough to learn from our mistakes and come up with a solid solution.
Hopefully, when this is all said and done, the world will have learned that Capitalism in its worst form can be as evil as Communism at its worst.
I think a highly regulated moderate version of capitalism is the perfect formula for success.
The days of excesses and bubbles need to go by the wayside.