Capitalism (we are all SCREWED MAN!!!)

Hi,

Economic climate is a bit crap eh? It seems whenever you turn on the TV, or open a newspaper (well, one without breasts on page 3) it will tell you tales of some company or other which is going down the tubes. This is A Bad Thing, people loose jobs, their savings, their homes and before you know it you have 'buddy, spare a dime?'

But there is an upside, some of us are insulated from the woes and pain, our money secure, our homes safe and employment just around the corner. These people are the bosses. The fund managers, the chief execs and chairmen. The people whose fast and loose accounting and business practices have landed the other 99.99% of us in the shit.

When Robert Maxwell died, and the full horror of what he and his board (ie his sons) had done, the courts were hard. They froze the assets of the family, and would only allow 'reasonable expenses'. These expenses amounted to £5000 a week, on top of living expenses, which included 1st class air travel. Because that's what he was used to. Never mind that he was only able to afford to live in that lifestyle because he had stolen the pensions funds of his workers, who might earn £1000 per month. Oh No.

Hanover Finance is in difficulties, this means that many of the people who invested in this company will not get their cash back. The guy who owns the company? He is fine, its 'limited' see? No comebacks. He is protected by 'regulations'. It makes me smile when free marketeers ignore the free labour market (i.e.unions) and people who hate 'red tape' but cling to it, if it is whats stopping them going to the poor house.

If you run a deregulated economy, you turn businesses into protection rackets and businessmen into crooks and loan sharks. If you really want to deregulate, you have to remove the regulations which protect the businessman as well as the investor, so if they screw up, they loose everything first. That might make them think twice before they make unacceptable risks with our money.

Capitalism is the least-worst way to run an economy, but that doesn't mean we cant make it better. You need regulations, because it has been shown time and again that you can't trust people not to be greedy.

Be Good