Free market capitalism - Boon or Curse?

Free-market capitalism has nothing to do with the current financial crisis. Competition was good then and it is good even today. Government intervention was bad then and it is bad even today. The main problem is the American over-confidence in their ability to manage events and crisis around the world. Europe is their alter-ego. They would rather not use their own brain but go by the American decisions. Just in case they use it all up! Asia talks about its own identity but catches cold whenever America sneezes. It is time the world asserts itself and not let some American bureaucrats set their agenda. It is time the rest of the world takes some responsibility.

Ronald Reagan changed America, starting January 20, 1981. He preached living larger than life. His clarion call was, “This is the greatest country on the face of this earth”. American lapped it up, not thinking exactly what it meant! All presidents since 1981 urged Americans to go out and spend to grow the economy, and they did. The people in the United States have spent 20% more than they have earned for the past 25 years. Now that the bills have come due, nobody has the money. This would translate in learning to live within your means. In other words, ‘Economic Contraction’! The economy would contract by roughly 20% in real terms and the consumer market would also contract by some similar percentage. The Europeans would follow like loyal subjects. It is time Asian countries show some leadership!