Baffling Systemic Flaws

Old-style Capitalism is bedeviled by systemic flaws that result in persistent, nerve-racking, up-and-down cycles. The chaotic swings, which baffle even the brightest economic minds, are the cause of recurring financial and psychological stress, worldwide.

It isn’t that trained economic minds are not bright enough; they are. But no matter how excellent the doctors are, a patient (whose body is riddled with incurable disease) could very well die of the illness. Old-style capitalism’s problem is its own very nature. Old-style capitalism was assembled, over the decades, on a haphazard basis. Therefore, unfortunately, it includes inescapable, anatomical flaws that cause the familiar but stressful up-and-down economic cycles.

Turbulent September, 2008

The turbulent events, which began in September 2008, threaten the very survival of the world’s capital markets and capitalism itself. Those events are a desperate wake up call for the leaders of the world’s governments to take corrective action. The leaders have responded heroically and are taking bold action. Strangely, the bold action is not delivering the expected results in a timely manner; the leaders are therefore contemplating and taking ever bolder action.

But ever bolder action will not save a dead man. Old-style capitalism is dead. Any time that leaders buy now will have to be bought again in the near future. Because the future no longer belongs to old-style capitalism. Absent fundamental modifications, old-style capitalism will now stagger from one nerve-racking crisis to another, until a major and incurable crisis results in its total - and costly - collapse.

“The 50 Billion-dollar Fraud”

In December 2008 (9-08 MSD), a leading and highly-respected American Wall Street personality was accused of carrying out Wall Street’s largest fraud ever. In an industry replete with superlatives, the “largest ever” is a truly hard metric to achieve. Of course, an accused person is entitled to his day in court, though the judicial system itself is as badly flawed as old-style capitalism - if not more so.

The Central Issue Is Trust

In the alleged Wall Street fraud, sophisticated investors trusted the accused money manager; their “due diligence” failed. Why?

Because clever money managers can outwit normal due diligence. What’s needed is individual self-policing. And that is woefully lacking.

Damage-proof Combination

For capitalism to become the damage-and-gyrations-proof machine the world is hoping for, it must combine a solid structure with inflexible self-policing. The result will be a robust new-style capitalism that can guarantee stability as well as continuous, worldwide economic expansion, enhanced by zero inflation.

It Has A Name...

The hoped-for robust capitalism has a name: WeMSA Capitalism. And it’s ready, right now, to provide what’s missing. Fraud, by the way, cannot occur in WeMSA Capitalism. Here’s what it will deliver to both old and new capital: