Capitalism has failed

October 4, 2008, 6:22pm,  64 views

Capitalism has failed. That’s the only conclusion to draw from the $US700 billion bail-out package to secure world financial markets.

That’s a lot of money and nobody is even sure if it will work.

I wonder how a Communist government in the former Soviet Union would have reacted to such turmoil?

Australian Prime Minister Kevin Rudd thinks government intervention in financial markets is a good thing.

“This is a positive step forward in restoring stability to the global banking system,” Mr Rudd told reporters in Sydney.

“But there is still much much more work to be done.

“The stability of the banking system is important to all working families everywhere.”

Mr Rudd praised the US administration, Republicans and Democrats, for putting aside their differences and passing the package.

“Now the challenge is globally consistent financial regulations on transparency, on prudential standards and on corporate governance,” Mr Rudd said.

Federal Opposition Leader Malcolm Turnbull also welcomed the handout and said it would ease pressure on Australian banks and financial institutions.

“It is an important step to resolving confidence throughout global financial markets,” Mr Turnbull said.

“As for Australia, while we do have a much more secure financial system - better regulated, better capitalised, lower level of default - nonetheless we are part of the world and we have been affected by the global crisis.

“We are in the midst of a global economic storm. We will get wet but we will not sink … (the move will) benefit Australians and ease pressure on banks and other institutions in Australia.”

Mr Turnbull warned that the move was no “silver bullet” and there could still be “rocky” times ahead.

Whatever happened to the free market?