Rays vs Pinstripes
Posted On Thursday, April 9, 2009 at at 2:01 PM by Chad CarlsonWow! “Death of capitalism”! One might expect this phrase out of some extreme left-wing or maybe even a political figure jumping on the band wagon, but a twelve year old girl! That’s right, a twelve year old girl.
In London last week, thousands stormed the financial district in response to the G-20 summit meeting, where such nobles as Pres. Obama and Prime Minister Gordon Brown discussed ideals on how to overcome the global recession. Many hope to compare this meeting to the 1944 New Hampshire conference, where ultimately the winners of WWII set an orderly financial system to repair the war torn markets. But instead of coming together under one umbrella, many are still arguing the century old debate of capitalism vs. socialism.
One may argue that a strong national government is the only way to securely monitor the financial system, as many argue today. The ideology sounds fair. But when you pull back the cover and study the politics behind the system, you might be singing a different tune.Compare a baseball club where the manager consults with his players on decisions but still has the final say. Sounds fair, right? Sure, since the manager and the players have a thorough understanding not only for the game but the strengths and weaknesses of each member and how to maximize their potential. Pretty straight forward. But now throw in the CEO. All of a sudden the manager and players are washed out by one “above” them. The buck simply passes over the manager’s desk and lands wherever the CEO decides. Now decisions are made by one, ignoring those (and the majority) who know best. And people wonder why the Yankees are so screwed up.
Everyone agrees our financial system needs leadership; it always has and always will. You cannot run such a dynamic power without rules and regulations corralling the greed factor. But do we need the extra CEO? Does the government have a silver bullet? Do we really believe a government ran market is the absolute best scenario? This country fought a war over the same issues many seem to embrace today. Last time I checked this nation is for the people and by the people, not for the government and by the government.
If we start believing “death of capitalism”, our financial system will weaken dramatically. Why are there so many foreign investors dumping billions in our market while basically ignoring their own? The growth happens here. Now is the time to take advantage. Like Warren Buffett said, “Be fearful when others are greedy, and be greedy when others are fearful”. Capitalism may have taken a hit, but we have over two centuries of exceptional growth to outweigh the last two years. Think about it.
-Chad Carlson
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