KEY POINTS:
This year Germany celebrates the 20th anniversary of the fall of the Berlin Wall and the triumph of capitalism. I don't predict the Wall parties will be much fun, however, what with the country slipping into its worst recession since World War 2 and the victory of capitalism itself looking a little bit premature.
In fact, a wave of crypto-socialism is crashing over the world as trillion dollar industry bailouts and bank takeovers become the norm for governments of all persuasions.
In the space of week, for example, both the right-wing National New Zealand government and its left-leaning Australian Labor counterpart have promised to prop up whatever industries they see fit.
John Key's announcement that the government would provide funds "on a temporary basis" to a select group of companies if they deemed it was " in the best interests of the country" was mirrored yesterday in a statement from Australian Treasurer, Wayne Swan.
"[The Australian government] will take any measure that is responsible to ensure the flow of credit to Australian businesses, Australian investors, so we can support Australian jobs," Swan said, admitting that a so-called 'crisis fund' was a possibility.
This may not be socialism in the strict sense as defined by the Britannica Online as a "social or economic doctrine that calls for public rather than private ownership or control of property and natural resources" but it's pretty close.
And, according to an article written by Mohamed El-Erian, the chief executive of PIMCO - the world's largest bond manager, investors should not expect full-blooded capitalism to return any time soon.
"Whether we like it or not, governments will join, and in some case overwhelm, market forces in determining prices in many markets," El-Erian writes.
"Market participants have no choice but to carefully assess the consequences of what is likely to be an historic, multi-year rise in government involvement."
David Chaplin
Photo/A woman walks past a surviving section of the Berlin Wall, 2005. By Megan Stuzner.