Mention the word Capitalism and what comes to mind? New York, Wall Street, Lehman, Merrill, Hedge Funds are but some of the expressions.

But, we may be seeing right before our eyes a historic change to what Capitalism means. Think about it. Russia is a nation ripe with natural resources and of course the money that goes with those resources. But, are people in Russia living like we are? Are they living in nice 3 bedroom houses on tree lined streets? Do they have the disposable income we do? Not a chance. Central authorities in Moscow decide how and when things get done and a tight knit group of Oligarchs seem to be driving the economic bus as well. China is a nation overflowing with money as their manufacturing sector blossoms. Are Chinese all living in the lap of luxury? No they are not. The Central Communist Party overshadows economic decisions and a goodly portion of the population is still impoverished. What Russia and China have in common is an underlying element of Government control. Call it Capitalism with a Socialist theme. Call it twisted Capitalism. Call it what you may. It just does not meet the North American paradigm of what we feel Capitalism is all about. But, before we get too smug, take a look at what has now happened here at home.After a multi-year experiment in which Wall Street was allowed to function unregulated, the heavy hand of Government is now coming down. Politicians have now passed a $700B bailout package. Treasury Secretary Hank Paulson has redefined the role of Treasury Secretary with his week-end manouevers and machinations that saw Bear Stearns gobbled up, Fannie & Freddie bailed out, Lehman bought out, AIG fed an $85B lifeline etc...This behavior reeks of dictatorial heavy handedness and Czar-like power. Going forward look for strict oversight from the politicos, dictator-like decision making, look for Washington to play a role in deciding how and where the $700B bailout gets spent and look for Government to decide who thrives and who fails in the world of finance. Maybe Russia and China have long known that Capitalism cannot run free and that it must be controlled by Government. Maybe now we are about to have a taste of that bitter medicine. Something tells me that the past 20 years may have been an anomaly. We may not like what the next 20 years look like or feel like. I seriously hope I am dead wrong on this notion. Brace yourselves. The road ahead could have some bumpy sections to it....