The world media and people in general keep talking about this as a credit crisis. And how to 'fix' the credit system. And there certainly has been many measures passed to 'fix' the credit system.
But what if the whole financial meltdown is simply the reality of the political-economic system revealing itself in financial terms.
The financial system is a representation of real wealth. Where pieces of paper(contracts) are assigned relative values to each other, and most importantly to things in the real world. £2 pounds can buy 12 eggs. £20,000 pounds can buy a new car. 1,000 shares of XYZ corp is currently valued at xxx pounds.
An analogy is when the Soviet Union began failing. Was the monetary problems in the Soviet Union during the late 1980's a failure of their credit system. Or was the failing credit system a manifestation of the deteriorating reality of the Soviet political-economic system as a whole.
You know the answer to that question. You intuitively know that the Eastern European communism was failing as an economic system by the 1980's. Drowning in an ever rising tide of bureaucracy. Trying to compel people to do things against their own human nature. Increasingly trapped in laws/regulations and so forth. It became unmanagable.
I see Western European democracy as now coming to the same end game. Never ending bureaucracy, the huge nanny state, a ruling ideology that is incompatible with human nature, never ending laws.
Russia eventually found a new system. It cannot be admitted in the Western press, but the new Russia works. There is actual real jobs for people, there is big opportunity, real projects are actually being carried out and completed. I notice 'miraculously' Russia's financial system is functional. Its banks do not need bailouts. Are we so stupid that we believe it is because Russia has better banking regulations than us?
Isn't this idiotic worship of regulations and laws as our salvation, part of what has gotten us into this morass?