The main aim of the capitalist economy is to make the funds easily available to the people, so that they can establish their businesses, which will improve the average standard of living of the people and make the country more prosperous. However, undue advantage of easily available funds was taken by the citizens. Here the governing authority too is to be partially blamed. People bet big on the housing sector, with the belief that the valuation of their houses will never degrade. This belief proved to be wrong, and the housing loan sector formed the main reason for the current turmoil.

The West propagated capitalist model of economy to the world, but today they are caught in their own trap. Too much leverage given to the industrialists was the worst thing done by the United States of America. Once the money is at a hand’s distance the greed to have more increases, and that is human tendency. To take a bite which is greater than the size of mouth has landed the entire world in the red land.

The days of the depression of 1929 come back to memory. This is because it not only tightens the credit situation but also results in unemployment. The economy slows down. In these days of high inflation in food and fuel the situation turns unimaginable. According to experts bailout is no solution. The banks should be made to pay the price for their deeds. This is the only way to teach a lesson to the businessmen, who have used their freedom in a wrong way.

Capitalism has died and is being replaced by friendly capitalism. Such meltdown will drastically change the face of the regulation system. The new regulation system will be oriented towards the common man and not towards the Wall street.