First make our system extremely vulnerable to a situation of falling prices, while the second allowed the crisis quickly spread throughout the world system.
In this sense conversion into securities of U.S. mortgage debt of poor quality only played the role of a detonator for a bomb lying long under the global financial system.
Of course, if the pre-crisis prices of many asset classes were not as high, if the shoulders were not so great if the interdependence of markets was not so strong; the crisis has not escalated to the world.
At the beginning of this year there was a World economic forum in Davos. It has fallen with criticism upon globalization, capitalism, bankers and the authorities. Modern form of winning virtually all the capitalist world can surely be called financial capitalism. This primarily refers to the role that global finance and they created the global financial markets play in today's world order.
“It is not simply world crisis. It is crisis at globalization conditions, it is globalization crisis” has declared the president of France Nikolas Sarkozy. According to the president of France, the finance, free trade and a competition “only means, instead of the purposes in itself”. Businessmen were replaced by speculators.
We considered that a freedom or enterprises above all and by that have weakened democracy. Before us there is a crisis not economic, but deeply public. Also that it at all hasnt ended that any “bottom” is not reached, and that continuation follows.
Key questions today- not to replace capitalism, but how to develop it in less inconsistent form.
As a conclusion we would like to say, that key questions today- not to replace capitalism, but how to develop it in less inconsistent form. And we have two different ways of the solution:
- We ourselves will change sights at economy.
- Time will force us to change them.
Clear for understanding the fact that the world in future will be not such as world todays. The world needs the renewed capitalism and general values.
We must satisfy a need in protection, justice and equal possibilities by means of cooperation, adjustments and state administration, or the world expects isolation and protectionism.
In the future it will be an era of regulation, and in the world broken into large economic regions, consisting whenever possible for the countries with as much as possible homogeneous economy and levels of development.
And we should remember that capitalism is a system and any system live definite period of time. Another system should change capitalism on its place.
List or resources
- О множественности моделей капитализма см.: Crouch C . Capitalist Diversity and Change. Oxford: Oxford University Press, 2005.
- David Coates, “Models of Capitalism: growth and stagnation in the modern era”
- Models Of Capitalism, “Debating Strengths And Weaknesses”
- Федотова В.Г. Глобальный капитализм: три великие трансформации: социально-философский анализ взаимоотношений экономики и общества