Capitalism-what was left of it by then-died in 2008 when Lehman was bailed out. The entire world is now a fascist state, with the merger of corporate and state power now driving everything-currencies, jobs, interest rates, trade, dissemination of news, weather, and scientific advancement. A return to the free market will never happen.
In truth, the repeal of Glass-Steagall in 1999 accelerated the U.S. empire's demise by allowing the big banks to unleash their derivatives monster on the entire world's wealth. These derivatives now total $1.5 quadrillion dollars,mostly interest rate swaps! This is in a world of $75T yearly GDP. Derivatives 20x the value of global GDP? Yeah, we have a stable capitalist system? NOT.
So lets review: Because of deregulation, a bank can become “too big to fail”, eliminate competition as needed, create leverage against the notional value of the actual capital/assets it possesses by 30, 40, 50 times or more, punish savers, kill jobs, conjure up any price for any investment or derivative it has on its books regardless of market conditions, engage in accounting fraud, and expect bailouts at the first sign of sickness. THIS IS NOT CAPITALISM!
0% interest rates for 6 yrs, bond fraud, bailouts, and financial repression will one day make everything we believe to be money worthless. Attempting to remove risk from business cycles is impossible, like chasing the end of a rainbow hoping to find the Leprechaun's gold.
What the world really needs to do is shun US Treasurys and starve the US Military Industrial Complex beast of its sustenance to wage its petrodollar war.Then and only then can we kill off parasitic entities like Goldman Sachs,JPM,Barclay's,and HSBC.Unfortunately, when one looks at our unsecured border, financialized economy, corrupted govt, broken bond of common language, low wage service sector jobs, crumbling infrastructure, bankrupt counties, bankrupt cities,bankrupt pension system,and Military/CIA NARCO police state, well, America is already a third world country. Anesthesized, vapid, narcissistic, uninformed Americans just don't know it yet.
We(the WORLD) are left with 2 choices now:
1) A new currency system not based on the USD or a single nation's currency.Once the US privilege of forcing the world to trade in dollars is abrogated, it's game over for the United States.
Either one will be catastrophic for Americans,and that day of reckoning is approaching faster than they could possibly comprehend.