23 October 2008 - "I have found a flaw" so said the great maestro of the free market. I couldn't help to say I felt sorry for Alan Greenspan who could not defend the laissez faire economy last night. Alan admit that his belief and ideology in the system of self-interest is not absolute in bringing a viable economic ground in the case of financial sector.
Even though it is heartbreaking for me to watch Alan testimonials on the defect of the laissez faire system last night, I still believe that free market system is the best system in creating a better economic well being for the mankind. What happened in the credit default swaps catastrophe was that the nature of the system itself went into a rectifying mode by bringing down the whole bulk of the "reckless gambler" and its institutions. I can't blame the market economies for bringing this large institutions down to the drain because it merely do what the system was destined to do which is punishing the reckless players for its inefficiency in forecasting the future market for housing properties.
But indeed this punishment came in with enormous numbers and would bring a long winter in the credit markets. I myself had been bombed by critics of the Capitalism ideology and it seems hard to counter these critics at this point of time when the free market system is in a state of default itself. Let's hope there is a positive outcome from this crash perhaps in evolving the banking sector to be more responsible in self-regulations for the next 100 years perhaps.