Francis Fukuyama opines:
All of this does not amount to a failure of capitalism, but to a failure of American public policy. It is inevitable, however, that the credibility of things that Americans hold near and deari.e., liberal democracy and a market economywill suffer greatly as a result of the crisis. People from Latvia to Korea to Mexico are suffering from a global recession that started in the United States. It started in large measure because of the faith that Americans placed in the ability of free markets to regulate themselves, a key aspect both of Reaganism and of the so-called “Anglo-Saxon” model of capitalism. Alan Greenspan admitted last fall that he was astonished that the self-interest of the financial community did not prevent it from making huge mistakes. Now that the public sector is cleaning up behind them, we need to move from astonishment to a different model of capitalism if we are to fix our own economy, and regain a shred of credibility on the world stage.