The third incarnation of capitalism was the Reaganomics/Thatcherism era where western governments implemented their controversial monetarism policies and market fundamentalism was left with as few restrictions as possible to do its own thing. This seemed to all work rather well until the collapse of some banks such as Northern Rock (UK) and Lehman Brothers (US), which led to the last meltdown.
If the ‘Mad Max’ doomsday scenario does eventuate, the world will be run by Mafia and hitmen (and certainly not Chartered Accountants like myself), so therefore, like believing in God, the Mad Max Paradox suggests that it is rational to believe in capitalism whether the belief proves to be validated or not!
So, we have covered some of the eminent economic theories as they relate to us today. In my new book, Get a Financial Grip - a simple plan for financial freedom, I talk in more practical terms: how can we as everyday, individual Australian investors in 2012 take steps in property and shares towards a wealthier future?