Is capitalism in the US about to become another system? Are the measures being taken the right ones? Do the American public realize the seriousness if the crisis? Yup, I got the answers!

THE DEMISE OF CAPITALISM ?

“Human nature was not intended to exist for any long period of time within the precepts of logical and humanitarian principles. No political system has ever survived a whole millennium. As they reach their best and most prosperous periods, great socio-political systems, strangely revert to the practice of its original flaws and shortcomings.”
Professor Schultz-Messener

“How come capitalism has failed so miserably this time, Professor?”
I had agreed to accompany the Professor to a Financial and Behavioral Symposium taking place in a paradisiacal hotel in Andracht in Palma de Mallorca; the question had been on my mind for some time. He answered:
“You have to go back a bit to understand the way capitalism has developed and why it crumbles occasionally”
“Tell me”
“Listen, the moment it was accepted that rights were granted to individuals, Western culture had a good system to rely on. Capitalism is essentially the acceptance that all property is privately owned and becomes the means in the pursuit of wealth and well being.
“Is this crisis the end of capitalism?”
The Profesor smiled and replied:
“For more than two hundred years, we have lived under the illusion that our system of capitalism within a democratic atmosphere was the ideal and only socio-political system that satisfied man’s purest aims and ambitions.”
“How about now?”
Pointing at the ceiling, the Professor replied:
“Many of our more enlightened leaders saw from the beginning of our republic the dangers surrounding what we proudly call a self-regulated free market economy. No question that the encouragement of free initiatives and reasonable government support, led to a prosperity that had seldom been experienced before.”
He paused to caress the 10-dollar Cohiba, inhale its scent and carefully light it. After a couple of satisfactory pulls and puffs, he continued:
“All this time, leaders and officials had rigorously observed those ethical principles that were identified with our democracy and its “self regulated free market economy”. But, as it often happens, prosperity is like a fruit on a tree. As long as it is in the tree and enjoys both the tree’s protection and its support, the fruit thrives. If it is allowed to fall, the fruit rots. Our problem is that the tree, not the fruit began to rot in the last decades. It was inevitable that the aroma of rotten fruit got to the nostrils of everyone!”
“How about the banks and the financial institutions?”
The original purpose of the banks has been prostituted, mishandled and perverted. It is not a process that can be blamed entirely on the American example; after the First World War, the thirst for new products, comforts and better living conditions, coupled with the availability of labor and monetary reserves from a wartime period, created a wave of private and government spending that saw the appearance of public works, huge housing projects and novel formulas for managing funds.’
“It sounds like the industrial revolution all over” I commented. He nodded and continued;
“You see, all of sudden, banks that had been little more than jars for collecting modest savings, developed lending procedures, insurance protection for loans, long term credits and its capacity to dispose of properties and products recovered from unpaid loans. They discovered that banks were the proverbial money-making machines!”
I added:
“I suppose that greed showed its ugly head at that time, supported by the intentional lack of controls and flimsy regulatory attempts that added to the arrogance and satisfaction of the perps!”
“Strictly, a matter of opportunity. If you leave the cookie jar without lid and easy to reach, there is no doubt that the eager ones will dip into it at the first opportunity. And that is what has happened throughout the years with our financial system. For too many years, our government allowed our Treasury to ignore what the regulatory agencies were ignoring.”
We laughed and poured the remaining drops of dry martini in our glasses. I asked:
“What is the solution, or solutions, professor?’
“First, our government must adopt a ‘you dance or else’ policy with banks , financial institutions, its own gurus, the media and the public in general. It has embarked on a major recovery expenditure and there is no way out, so a clear message must be conveyed to those who only know how to seek cracks that enable them to expose their sick mental and spiritual flaws. In other words: “Stop bitching!” Then, re-group all toxic assets or liabilities into one major pile of financial excrement – call it a ‘Universal Security Initiative’ or a ‘4F World Foundation’ (Foundation for F#!*&., Failed Fortunes) and go out in the world markets and trade like hell.”
“Do you think Rush Limbaugh will approve?”
That was when he threw the martini glass at me!