Protests Show Capitalism ‘Nearly Broken’

[marmar]

(Bloomberg) The protesters camping in London in support of the Occupy Wall Street demonstrators may be right and capitalism risks losing its “license to operate,” Generation Investment Management LLP’s David Blood said.

Blood, who worked at Goldman Sachs Group Inc. (GS) for 18 years before starting fund manager Generation with former U.S. Vice President Al Gore in 2004, said the protesters’ message is that the financial system is “broken” and “unfair.”

“In many respects, their concerns are right, and their assessment of where we’ve got to is right,” Blood, 52, said yesterday at a debate at St. Paul’s Cathedral, London, near where the protesters have gathered. “The problem is that capitalism itself is broken or nearly broken.”

The financial industry is too focused on short-term gains and flawed incentives that are eroding trust in the system, Blood said. Generation seeks to maximize long-term returns by investing in companies that prioritize social and environmental factors as well as economic performance. The firm manages about $6.5 billion, according to two people with knowledge of the company, who declined to be identified because the information isn’t made public. .............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-10-19/protests-show-capitalism-losing-license-to-operate-blood-says.html

[LuvNewcastle]

1. Capitalism has been broken for a long time.

FDR used socialism to save capitalism during the last depression. In the last 30 years, RWers have tried to eliminate socialism and once again, capitalism is faltering. Capitalism cannot survive without the crutch of socialism.

[izquierdista]

3. Maybe both are needed

Like a right AND a left leg are needed to walk properly. Hopping around on one leg doesn't get one very far very fast.

[LuvNewcastle]

5. I'm thinking along those lines.

Until we come up with a better system, that's about the best way I can think of doing things.

[PETRUS]

2. Capitalism is certainly breaking everything else... nt

[Rene Descartes]

4. Actually, what they really show is that our government is "broken"

as a result of corruption and cronyism.