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Thursday, 14 November 2013

What is wrong with Capitalism Today

There is not one single day that passes without I hear some of my Wall Street peers complain about the state of affairs of capitalism in America today and how different it has become compared to only a couple of decades ago.

By the same token, it is clear to everyone by now that the US is a more mature economy with lower growth possibilities and decreasing marginal returns. So I guess it all depends on what kind of capitalism we are talking about.

Modern market capitalism has shifted recently with the  domination of money markets and the financial system over the actual trade of goods. In effect you'll make more money trading in derivatives than actually physically trading in commodities. In short capitalism, or the recent move into financial market dominated capitalism, works very well for a small percentage of the developed world. Bankers, hedge fund managers, derivative traders ... and the rest would argue that it works well but having tax payers bail you out when it goes wrong simply means the risk has shifted from corporation to state, or you and me. Many would say that means a broken model.....Read More

Thank You
Ziad K Abdelnour

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