Capitalism is all about the Demand and Supply of money;
1) The flow of Hot money is borderless and will find its ways to the economies that generate the highest returns. It will flow out from economies that is not as efficient, where the government’s sovereign debt is unable to meet its obligations.
2) Therefore reforms must be made to keep the House in order, a balanced budget and reforms to industries that do not meet global standards of governance and disclosure.
3) The management of Risks in a global marketplace.
4) The emphasis of sustainable growth instead of pure growth of the GDP.
5) Every country, every industry has its unique problems and solutions must be found to tweak it back to health.
6) Once the House is back in order, the Crises of Confidence will disappear and liquidity will return with the liquidity of credit.
7) Over emphasis on low interests and borrowings is not sustainable in the long run and savings must be encouraged instead.
8) A lender of last resort (eg IMF) can only solve short term liquidity problems, not long term.