Growing up I was taught the Domino Theory; the fall of one country to communism would inevitably result in the fall of another, then another, so on and so forth. That theory itself seems to have had a set back in the end of the 80s when the Soviet Union fell apart. China's move to capitalism certainly nailed the coffin shut.
However, when it comes to economics, especially globally, I suspect we are seeing the first in what no doubt will be a Domino Effect; the fall of Iceland
. Where as the collapse of communism in eastern Europe was hailed as a failure of socialism, I can't help but see now the failure of capitalism.
While Kevin Drum
frets about nationalization of the banks, I figure it's a done deal, only being held back because of fear of the plunge. But extremes never work long term, whether it be socialism or capitalism. What needs to happen is a nice, steady balance of both. Unfortunately, I suspect there will be a swing closer to socialism for a bit until some of the more worthy capitalism systems are stabilized. Until then, prepare for a bumpy ride.