Watching askance from Europe, we note the wild allegations of "socialism" being thrown around in the US and the apparent inability of many Americans to recognise that capitalism, to succeed, requires rules just as much as football! And that it was lack of up-to-date rules, taking into account new forms of credit, that led to the current "meltdown". This was predicted by leading investors such as George Soros, but no one listened: the music played - "let the good times roll".

This return to laissez-faire capitalism by the neo-Republicans (who ditched the moral concerns of traditional Republicans) and not a few Democrats, not only promoted deregulation, but also involved denying the work of Keynes and others about the need for government to "prime the pump" at the beginning of a recession. A confusion of Keynsianism with socialism.

So now there is a panic about how "capitalism has failed us" when really it is the laissez-faire neo-Republican crowd who have failed capitalism!

Capitalism will come to the rescue if society knows what it wants of it. One obvious thing is alternative energy. There is much else too, that we need to meet the immense challenges humanity faces.

"Prime the pump", set the rules, and make it worthwhile for the captains of industry to undertake the great works the world needs - jobs will appear, demand will revive. And a chastened banking/investment sector will perform its traditional role (like non-toxic mortgages without the disastrous derivative frills that brought it low.

More than anything what the world needs is a sense of direction - without that capitalism will wander off to find profit in what is unprofitable for society. Capitalism is the most effective tool for getting what it is you want done. But our leaders must make clear what that is!