Lessons America Can't Teach Us Now

American capitalism could still teach the rest of the world a few lessons - but it's increasingly teaching us what never to do if you are a country loyal to a free-market economy.
For instance:

Never nationalize a troubled insurance company, especially two days after the Treasury and the FED say that no more taxpayer money will be used to rescue bankrupt financial companies.

As a government, never interfere to rescue and sell a failed investment bank and then decide several months later not to do the same for other failed investment banks. Applying that kind of double standard for the same species of financial creature signals to the market that monetary authorities are making up the rules as they go along. That lack of a strategic or systemic view takes a toll on market confidence.

Read More