Events in the last 24 months have economist and finance experts shaking their heads in shock. The spate of bank failures and deep recession have overturned textbook theories on their heads. And now the world of Finances and Economics have serious question regarding existing theories. Limited regulation was supposed to be ideal for the market as it spurred rapid growth and increased productivity. So America and the United Kingdom reduced regulation and witnessed explosive growth in the last couple of decades, as their socialist capitalism counterparts in western Europe saw only marginal growth.
Unfortunately the unbridled, unchecked capitalism has brought forth an economic catastrophe unseen since the great depression. The effect is a global collapse of banks and the real estate market. However socialist capitalist countries like France and Germany were not as harder hit as the United States and the United Kingdom.
All this have sparked a new debate about the wisdom of increased regulation of the market as seen in socialist capitalist countries. The French Banks has strict laws that guard against risky loans. As a result, the French economy has been shielded from the real estate collapse in the U.S., the UK and other countries. Whilst some experts think the time has arrived for all countries to adopt the socialist capitalist approach, others are saying, not so fast. Such pro unbridled capitalist expert belive what we are witnessing is just a temporary blip; more regulation will collapse the world economy.
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