Nicholas Kristof of The New York Times wrote an interesting article about Occupy Wall Street Movement and corruption in the heart of capitalism, Wall Street and Washington. The article is in mypaper today. During the Asian financial crisis, the finger was pointed at Asian crony capitalism as the main cause of the crisis. Today the cause of the American financial crisis is exactly a result of American crony capitalism.
What is so unfair in the American system is that it allowed the cronies to more than their fair share of reward in the American financial system. As a result, it’s human for them to grab as much as they could. This is unlike Asian culture where there is propriety and no one will grab as much as they can just because the system allows them to. To make matter worst, the cronies privatized the profits and socialize the risk to the public or American citizens. And when they failed miserably, billions of taxpayers’ money were used to bail them out. But the moment they rigged up profits they started to pay themselves crazy again, without having to repay the public debt.
That is how brilliant the American system is. Fortunately the Asian countries knew of the rot in the American system and are not imitating them. The Americans like to point the finger at Asians for being corrupt when they were the most corrupt in the world. The only thing that is saving them is that they control the western media and the media would not write about them.
We don’t have problems with too big to fail institutions. And we do not need to make our tax payers bail out the big losses during the world financial crisis. And our big fund managers are doing so well that they deserved to be paid handsomely since no public funds were used to bail them out.
There is no such thing as privatizing profits and socializing risks here. We are safe. Our money, our reserves are safe. And we may even consider bailing out the Europeans if they come knocking at our door.
PS. Please feel free to disagree with me if you think I am writing nonsense. Writing nonsense is an art and also my forte.