I am not sure if I missed something, or if it was just a rumor about some things that went wrong around that time?
What makes capital provision work so well in America is the security and regulation of our capital markets, where minority shareholders are protected. Lord knows, there are scams, excesses, and corruption in our capital markets. That always happens when a lot of money is at stake. What distinguishes our capital markets is not that Enrons don’t happen in America—they sure do. It is that when they happen, they usually get ex- posed, either by the Securities and Exchange Commission or by the business press, and get corrected. What makes America unique is not Enron but Eliot Spitzer, the attorney general of New York State, who has doggedly sought to clean up the securities industry and corporate board-rooms. This sort of capital market has proved very, very difficult to duplicate outside of New York, London, Frankfurt, and Tokyo. Said Foster, “China and India and other Asian countries will not be successful at innovation until they have successful capital markets, and they will not have successful capital markets until they have rule of law which protects minority interests under conditions of risk… We in the U.S. are the lucky beneficiaries of centuries of conditions of risk… We in the U.S. are the lucky beneficiaries of centuries of economic experimentation, and we are the experiment that has worked.”
From: Thomas L. Friedman: The World is Flat; New York: Picador: 2007: 332 f.
Well, the Friedmans, be it Thomas or Milton, don’t understand that we face what James Galbraith calls
The End of Normal: The Great Crisis and the Future of Growth
Does one ‘super-corporation’ run the global economy? Study claims it could be terrifyingly unstable
The Network of Global Corporate Control – Research Article
The Network of Global Corporate Control – Annex