The End of Capitalism?

The media are proclaiming the end of capitalism. Once again, reports of its death are greatly exaggerated.

In a recent Larry King interview Michael Moore said that capitalism was “over.” After all, capitalism gave us liar loans where we lent a million bucks to some poor guy making $15 / hour. Wall Street’s culture of greed combined with Washington’s lasses-faire attitude to give us the credit crunch. So goes the story.

Right now the government is engaged in a massive effort to fix the crisis—through bank capital injections, tax cuts, and spending increases. It even looks like we’ll lend some money to Detroit. But that’s not nationalization. Shoot, it’s not even Japan-style industrial policy. Right now it just looks like crisis management.

The overshoot and collapse that resulted in the current crisis is endemic to human society—capitalist or otherwise. This crisis won’t lead to the end of capitalism, any more than hanging chads in Florida in 2000 led to the end of democracy. Once more, the alarmists have it wrong.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-04T17:05:51+00:00December 22nd, 2008|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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