h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

The events of 2008 have illustrated the weaknesses of capitalism.
Not that communism is doing any better. But the real need is to
reform, if possible, capitalism. The first reform should be the
elimination of self-regulation. Either have no regulation, or, impose
government regulation. To pretend that an industry, like the finance
industry, can be self-regulated is to confuse people. One critic from
the USA said that the global financial system was now too complex
to be regulated. I disagree with this and argue that the global
financial system is certainly more cluttered but not more complex.
Sure there are a lot a financial derivatives out there but they all
involve money in some shape or form. If experts "follow the money" they
will be able to work out the various derivatives. Behind the financial
derivative scene is some subsidiary (or sub-subsidiary)of some bank. If
you regulate the banks you are indirectly regulating the derivative
market. Instead of setting up a whole lot of regulatory bodies,
governments would be best served by regulating the banks and the stock
exchanges. Some role for the World Bank will have to be created. The
contagion effects cannot be handled by any one country or region.
Abolish the IMF (it is completely out-of-date) and set up a global
regulatory body under the control of the World Bank. If necessary, set
up a world civil court to prosecute any breaches of international
financial law. The UN General Assembly can be used to discuss and make
such laws. Once ratified by the UN Security Council, these civil laws
can stop wild movements due to unregulated financial markets. By the
time this financial crisis is finished, very few countries will be left
untouched. Whilst this memory of financial horror is still vivid, some
action needs to be taken. If this is not done another global financial
disaster will occur in our future.