Global corruption prevents needed reforms and stops basic freedoms and enterprise from stimulating greater progress, thus appears to be the basic problem in Argentina and in many places. American strategic advantage, upon which is built all our wealth and power, is freedom of innovation and capitalization of new enterprise. No where else are new ideas accepted by capital markets with such enthusiasm, sometimes irrational enthusiasm but the working of capital markets and hype and hope are the keys to American growth and prosperity, innovation and military power.
Corruption is prevented by habits, traditions, law, rules and regulation which creates a cat and mouse game - and people cheat in new and complex ways. A system of competition is necessary where honesty pays - Enron is gone so markets worked sort of - not prevented or caught they just did themselves in.. but took the OPM (others peoples money) and ran.
The destruction of trust and faith in capital markets would be the most serious threat to our culture, welfare and security I can imagine - more than terrorist, more than federal deficits, more than corrupt politicians, a capital market melt down is possible but not likely. People keep saying we have the best markets in the world - could Enron happen in the European Community ? I don't think so - It is like people say we have the best health system with health statistics worse than Costa Rica, the best education with learning less than third world countries, the best constitution and government - with pork, and cash and cheap salesmen and hustlers - things could be better - no reason for hubris - or false pride.
Even the one third who live in privileged suburban reserves and gated communities are hurt by the crimes of capitalism, they may wake up to their collective responsibilities besides killing foreigners.
nytimes.com
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