Capitalism is not coming to an end

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"Capitalists should also appreciate the fact that capitalism without financial failure is not capitalism at all, but a kind of socialism for the rich. Privatizing profits and Socializing losses is clearly not what capitalism stands for."
By: Kaushik Das, Kotak Mahindra Bank
The above quote sums up where capitalism might be going. The automobile industry in US was bailed out for 17.4 billion dollars by the US gov't, UK has spend over 3.6 billion and France has announced 3 billion euros to rescue the car industry. Additionally, the ailing banks in the US are bailed out for 138 million under the Troubled Asset Relief Program. The gov't a 700 million financial rescue plan. The US has taken full control over mortgage banks Fannie Mae and Freddie Mac, American Insurance Group and Bank of America. The total bail out package in US; England, Japan and Germany have exceeded 10 trillion dollars.
The gov't in the US is to be blamed for this crisis. The interest rates set by the Federal Reserve, and the sub prime crisis in the last 6 years are responsible for the fall of markets and banks in the US. The gov't has no choice but to buy shares and warrants to save the companies.The government now owns the assets of various corporations, which were once owned by the banks. It looks like that the gov't in the US is heading towards nationalization of private sector - banks and troubled companies. Although this is against the free enterprise model that gov't should not intervene and markets should be free. But, it is justified, because when a major bank like Citi group faces huge losses that cannot be overcome by the private bail out packages it's only gov't intervention that can save them. Also it is necessary to foresee that if Bank of America Collapses it will affect millions of ordinary people, again reiterating that rescue efforts are necessary.
The above developments do indicate that this decade will bring an end to capitalism, but time and again it has been proven that end of capitalism and rise of socialism or communism will not be the answer to the current economic situation. The fall of communism in Russia and China are a proof that anything else besides capitalism cannot survive. Recession is the outcome of the "boom and bust" cycle. There have been several crisis like the great depression of 1930's which lasted until world war II, crisis of 1982, 1997 Asian Crisis and the dot com bubble in 2001. The chronology of events indicates that capitalism would emerge much stronger from this crisis. Opponents of capitalism may argue that this crisis is the worst since 1930's, and Capitalism would perish, however economists also predict that capitalism will survive with an interventionist policy.Government oversight, stringent federal laws and transparency will give rise to much stronger form capitalism. Even Jagadhish Bhagwati, University Professor at Columbia University argues that these bail out plans are just temporary relief and once the banks start working well, the gov't will exit, sell the shares and let the private takeover happen.

The “Game is Over,” for Pakistan says the Economist?

The question is the game really over for the Pakistan cricket team? The answer is yes, it is over, with the most gruesome attack on South Asia’s famous sport: Cricket. The only team that had the guts to tour Pakistan and respect the good relations is now regretting their decision to tour in the first place. The sporting hopes and aspirations of Pakistan are lost in the smoke of the grenades and gun fires. Cricket which is the favourite sport of Pakistan and has seen some of the great stalwarts is in a big crisis.

For Pakistan, it dates back to the last decade where cricket has become a target of religious extremism and fundamentalism. The Pakistani cricketers were forced to grow beard and perform religious prayers. This was later stopped by newly appointed Pakistani Board Association Chairman Nasim Ashraf in 2006. Also the great bowlers Shoaib Akhtar and Muhammad Asif were banned from playing for the failed PCB tests. When cricket fans all over the world are looking forward for the IPL, there won’t be a single Pakistani player. Pakistan: India’s ally for the World Cup 2011 is under scrutiny now. The Gadiffa stadium and Liberty Chowk which were filled with cricket players and fans once upon a time will morn for the killed policemen.

The blame game by the Pakistani Gov't will only ruin the existing situation. The planners who carried the Mumbai attacks could have also possibly carried the attacks on Sri Lankan team. Announcement of one crore rupees by the Governor of Punjab for the person who finds the terrorist and a thorough investigation into this matter willl help in proving to the world that Pakistan is not a failed terrorist state but a state that is trying to fight terrorism.