September 30, 2008, 0:00 a.m.

To Save Capitalism What now?
By Rich Lowry  National Review

It was just two days short of being an October surprise. A historic House vote on the Paulson bailout plan became historic for a reason no one expected: It went down to defeat, and not by a narrow margin.

As the Dow plummeted 777 points, Republicans and Democrats took to the microphones to play the blame game, no holds barred.

Superficially, both parties are to blame: 133 Republicans and 95 Democrats voted against, large numbers in both caucuses. But a majority of Democrats voted in favor.

Republicans said a harshly partisan speech by Nancy Pelosi turned off about a dozen Republicans who were set to support the legislation. That prompted a devastating rejoinder from Democratic Rep. Barney Frank — they voted to tank the economy because their feelings were hurt?

The simplest explanation for the defeat: The public opposed the bill, and all the intensity was against it. Congressional staffers couldn’t pick up the phone without getting harangued by angry constituents. Everyone suffered from taser-level sticker shock from the $700 billion price tag.

Treasury Secretary Hank Paulson was caught between two different audiences. He needed the $700 billion figure to reassure Wall Street he’d have a big bazooka to deal with the crisis, though it’s unlikely he’d ever spend that full amount. But it alienated the very people he needed to pass the bill.

Meanwhile, Paulson and Federal Reserve Chairman Ben Bernanke were underwhelming in congressional testimony last week when explaining how the program would work — basically saying “trust us.”

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http://article.nationalreview.com/?q=MzhkYzEyNjFjMzFmZGE4NjUzMTcyYTZkZGE4MzRjYjk=

Damn'd, the pride and "joy" of the Bolsheviks. The Weenie eaten, sausage suckin, Frank. I don't think the bastard wants to "save capitalism", he has the novel experiment of commieism in mind.

We see that harry is hitting the juice again, ...getting drunk and then posting! Too bad no part of his post makes any sense to anyone unless you are three sheets to the wind youself.

Where's Willie the Bartender when we need to cut harry off!

think will save it? The Taxpayers!!!

It can't be saved comrades.

because there are several fundamental flaws in the ideology and mechanisms which cannot be changed without creating a system that is other than capitalist. Chief among these is that concentration of power prevents the market from working yet the market rewards concentration of power/increased efficiency. Hence, the huge swings of boom and bust we see in an unregulated market.

Another fundamental flaw is similar to the logical fallacy called the fallacy of composition. Capitalism rests on the idea that each individual pursuing her own self interest will contribute to greater welfare for the entire society. however, there are many, many situations in which the interests of the individual run counter to the interests of the society/nation. Runs on banks are a good example. It may be in my best interests to withdraw my money from my bank but if everyone does that the bank folds.

Capitalism is so far the best economic system man has come up with but to think that it is the ultimate system and that there is nothing potentially better is hubris. The kings of Europe thought that feudalism was the ultimate system. They were wrong and so are the market fundamentalists who think there can be nothing beyond capitalism.

The collapse of the system is inevitable. Marx was right about that. Personally, i'd rather see a somewhat orderly transition to the next system but humans don't appear able to act but rather just react.