Is this the end of Capitalisim?

There has been talk among conservatives and liberals alike on whether the peak of capitalism has been reached. Since the fall of Bear Stearns in early summer, numerous major banks, both in investments and basic banking alike have collapsed. Washington Mutual officially declared Chapter 11 Bankruptcy and was declared insolvent by the FDIC (Federal Deposit Insurance Corporation) on September 26 this year. Total losses from WAMU totaled out to $327.9 billion making it the largest company to fall into bankruptcy every in United States history. Currently the credit market is still frozen and interbank lending is essentially none existent. Include a housing market run that hasn't been seen since the Great Depression, and Wall Street is sent into a tailspin. Two weeks ago the world recognized what would be known to our children as the "Great Crash of '08."

So what does all of this mean? Has capitalism failed at it's very core? Does the US financial system see doom in its near future? Is this the end of the Great Western Powers and more so, is this the end of Globalization. Few would say yes, but to the contrary it is no where near the end.

First one most recognize that this the the natural life cycle of free market economies. People make money, then the make more money. Eventually someone becomes too greedy and their greed eventually becomes there downfall. They buy more than they can afford and suddenly, the debt tailspins out of control. One then has no choice to either stop buying to pay the debt or just collapse all together. The point of modern government of course is to minimize the blow when it all comes crashing down.

People are screaming of course that this whole bailout smells of socialism. Government now has a stake in the markets and many banks are now publicly owned. In many ways I can disagree with them. It angers me more in that the government has used our money (taxpayer money) to repair what was the consequence of their greed. However, I have begun to look at the whole picture rather then the fine line. The government essentially had no choice. If government could help these companies without using taxpayer money, they would do it; however that's just not possible. People need to realize Main Street needs Wall Street and vice versa. Without banks, there is no credit, without credit companies can't access loans to continue there operations, and without money, companies will have no choice but to layoff people and downsize. Everything is set in a symbiotic relationship and the public needs to see it. When you look at the whole picture, that being pragmatic.

So what needs to be done to allow the system to survive. The first and for most pressing issue is to save as many banks as possible. Government has done a fairly good job at it, but the crisis is far from over. More needs to be done, and countries need to unite with each other to figure out the best way to save as much as can be saved. One should not follow the policies of the 30s that allow countries to hoard goods rather than continue trade. Some are even talking of a new Brentton Woods system, a co-operation of countries to set proper trade and regulate currencies exchanges. I whole heatedly agree with this and the first of the talks should be to reorganize the IMF. The IMF's debt regulations between nations is outdated and needs to be examined.

Next of course is internal regulation. As more and more time passes and the November 4th election rapidly arrives, it looks more and more likely that the Democrats are going to win control of the government again. I am not ready to set my predictions just yet, as polls are unreliable, and in such a troubling time, voters are irrational and confused and are capable of anything at the last minute. However, with the numbers as they are and with two weeks left, McCain's chances of coming back to the top are becoming more and more unlikely - not impossible, but unlikely. People don't necessarily distrust McCain, but rather the party he belongs to and the simple fact is, it seems the public has become weary of of the Republican Party. If Obama is to win, he should recognize that while regulation is needed, there is a fine line from proper set rules and socialism. The economy needs smart government, not an overpowering one. Government should set rules that allow finance to repair itself not take over it. Finance however should realize that the government bank is not unlimited and only so much money can or rather should be passed around. Globalization should continue. NAFTA should be reexamined but not abolished. Without free trade, countries like China or India could not be near what they are today. Last but not least, the American people need to start saving. The Baby Boomer generation has begun to feel the consequence to not properly saving for retirement. Capitalism and the stock market can take you far, but it is by no means a protected system for retirement. The simple truth is money wont always be there, markets have there ups and downs, and no society has ever survived without saving a little something for those "rainy days"

Is capitalism over? No by any and all means. It's just on hold right now. Much like the economist states, "For all its flaws, it still is the best system out there." With proper governing, the financial system can repair itself and become strong again.

Generation X and votes.

Certain things bother me more than most these days. Much of them dealing with our generation or rather Generation X. Much of Generation X was born from the baby boomers (those born between 1948 through 1960). For a previous generation that for the most part has shown up the polls in large numbers, who took an active part in politics demanding change in the 60s, protesting the Vietnam War and preaching peace, love and flower power, I could never understand why our generation never seemed to care about modern day politics.

Certain comments have come to my attention as this election approaches. I recently read a blog of an old but now distant friend. What can I say, occasionally I get bored and read on what other people have to say. Awhile back, she wrote a blog on some of the more interesting things about her since her graduation from school. In it, a certain comment popped out. In it she noted she wasn't registered to vote. She claimed she was a bad citizen but that she simply "Just didn't want to." In her blog she is quoted as saying, "I just don't want to register with a party, but I don't want to register to be Independent. I'm just going to sit in the middle and let other people pretend like they are deciding."

I have to say, that comment irked me in away I hadn't felt in awhile. My first and for most opinion is that someone who doesn't vote has no right to complain about the current state of affairs wither local or federal. If one cannot participate in on the most basic of democratic principles, then he or she cannot complain about anything. If you want change, you should fight for it. More so the shear fact that she came to the conclusion that somehow her vote wouldn't really matter angered me even more. Your vote always matters. Even a single vote can sway an election in ways people never could even imagine. Bush won the 2000 election by a mear 5 Electoral votes and yet only 47.9% of the popular vote with Gore winning 48.4%. Someone voting really does decide on what is in store for the future of this country. Personally, not voting in the most simplest of local elections in many ways shows you as being not necessarily a bad citizen but rather a poor citizen. Admitting that that not voting and being a poor citizen is one thing but to not register and then claim, "but I am a good citizen cause I don't jaywalk" is a poor way of vindicating one's self. One should always participate in on government whether it's in town hall meetings, watching CSPAN or even VOTING!!! The policies of today can effect everything about your from taxes, to your job, to how you raise your children. Not to mention, should one care about the future of there children? What hold in store for your kids and government.

Hope of course is that my generation will start to finally care about this up and coming election. Much of the news finally states of college students registering in record numbers. My only hope is those same numbers will translate to that of people showing up to the polls. It doesn't matter whether you are a republican or democrat, conservative or liberal or even an independent "which really is just a way to say you are a liberal (Democrat) and just don't want to admit it." It's time for Generation X to stand up to what they believe in. The simplest way to do that is to simply mark that ballot this November 2nd. My hope extends to that very person that posted that blog.

P.S. Apparently I have now been listed amongst the many "Liberal Elites" of this nation in political ideologies of FDR, JFK, or even the Rockerfellers" Not a bad list huh?

The Post American World and the 2008 Election

Most undoubtedly the 2008 will go down as probably one of the most tumultuous years in American History. A faltering economy, a war, to this day, with no real end in site, and a government which hasn’t seen this many of its own citizens losing faith in the system in almost two generations. Many Americans, myself included have grown weary of a do nothing congress, 8 years of failed policies, corruption, and fear of course of a very bleak future of the United States.

The “Financial Crisis of 2008” has not only affected America, but has now spread through most of Western Europe, Russian, and much of the Eastern world. China, Japan, and Singapore now feel the effects of a world trying to function without credit. Ben Bernanke stating that the outlook of the economy in the next year looks bleak doesn’t help much in the stock market with the Dow Jones losing nearly 30% of its value in one week alone. While the IMF claims with proper action the threat of another global depression, much like what was seen in the 1930s, is minimal, the shear thought of it scared investors to their very bones. The U.S.A. now has a deficit fast approaching 10 trillion dollars. On a GDP of 13.7 trillion, 10 trillion is a scary number. 65% of the GDP now pays the debt alone and more than 15% of that is just to pay off the interest. Agreed, compared to most nations of Western Europe or even Japan where 126% of the GDP pays off the debt, the US is in a better position than most but with a dollar now faltering in the money markets, 65% is a very unsettling number. While not reaching that stage yet, we have most assuredly reached the final chapter in the baby boomer generation of economics. What lies in store for myself and the rest of Generation X remains to be seen. As the previous generation begins to age and retire, such systems as Medicare and Social Security will be strained, and the budget will soon be thrown into the red even further. Fears lie of course on who in the end will have to pay this debt. More so, will college be affordable for my children and will Medicare (or some form of Universal Health Care – god willing) be available for me when I reach those golden ages?

On the world stage, American has never seen its self rather this unpopular, well really ever. The war continues to drag on with Americas suffering the brunt of it. To date, 4180 deaths have occurred on this country’s armed forces since the war began. I have always supported the troops and have always stated, in a real war that threatens the very core of this country, I would be one of the first to enlist to fight for it. I for one however believe it is time to end this conflict. It has lasted longer than Vietnam or even US involvement in WWII now. Our troops do not deserve this. This country sadly is seen rather in disgust lately. Much of Europe and parts of Asia have lost faith in this country and its ability to continue peace across the globe. While still the epitome around the world, many are starting to see the cracks in the economy and an immigration policy and restricts more than opens. Many find the government was a war hawk, looking for conflicts rather than preventing them. Of course, many like myself, have seen the prestige of the Presidency falter rather than glow with Bush’s numbers at there lowest for any president.

I have faith this country. I always have had faith. Americans, while inherently lazy and of course waiting till it is as bad as it gets, always fixes the problems and fast for that matter. This country of course has seen its fair share of struggles. Two World Wars, A Great Depression, an unjust and unpopular war (Vietnam) and decades of strife in terms of Civil Rights and Woman’s Suffrage and in each, the better has always triumphed. We will get through this. Much of the fear now lies of course in the fact we have now reached a tipping point it what is now the post American World. Instead of the US dominating the global markets we now see a plethora of markets now entering the world stage. The EU, China, and India now hold nominal GDPs that only continue to grow. Militarily, many scholars now see the US much like the Roman or British Empire now at its waning period. While no eminent collapse of US society will happen fear of a US dominated world no longer existing scares many.

The time for change has come. I myself first believe that the US should rather embrace these growing nations rather than blame them of its problems or shun them away. Most if not all have embraced in some form or another of US capitalism and democracy. This country has shown the path and should continue in some form or another to help lead them down it. This country needs to find a way to end this conflict in the Middle East peacefully and triumphantly as soon as possible. Most absolutely of course, this government needs to reinvest itself back into its people. Highways, trains, and air travel need a major overhaul. Energy is old and antiquated and needs to be up dated. Like many of us believe, the age of energy independence is overdue. If America works together rather blame each other, this country can still show the world the way and perhaps the very ideology of America being “the last great hope” will continue.