Writing from Hong Kong, Thomas Friedman discusses the Madoff scandal, and relates it to the different approaches the U.S. and China have taken toward managing the end of communism and the rise of capitalism:
It is both eye-opening and depressing to look at our banking crisis from China. It is eye-opening because it is hard to avoid the conclusion that the U.S. and China are becoming two countries, one system.
How so? Easy, in the wake of our massive bank bailout, one can now look at China and America and say: “Well, China has a big-state-owned banking sector, next to a private one, and America now has a big state-owned banking sector next to a private one. China has big state-owned industries, alongside private ones, and once Washington bails out Detroit, America will have a big state-owned industry next to private ones.”
Yes, an exaggeration to be sure, but the truth is the differences are starting to blur.