National Post: Death of markets exaggerated

While all around us are hailing the death of free markets and the end of capitalism, nobody seems to have noticed how ugly capitalists are now rekindling the global economy. For people who don't know how markets work and how self-interest drives business activity, two good examples of capitalist-like greed in action include the mini-boom in the North American auto market and the emerging bubblet in Canadian housing. More broadly, the U. S. financial sector, responding to market signals, is also back in the business of cranking out fancy investment instruments and paying bonuses to people who do. Business investment is picking up. Stock prices are rising, and gold is setting price records.

Capitalism is dead, eh? Well, long live capitalism--or at least as much capitalism as we are allowed to enjoy. It may be news to many, but the very market forces that allegedly triggered the financial crisis are now triggering recovery. As French President Nicolas Sarkozy ( "the markets are mad") and other leaders of the G20 gear up for their market-bashing Pittsburgh Summit next week, they do so surrounded by millions of people who are now chasing the new market signals offered up by changing market conditions and despite new government policy. Rather than bash free markets, the G20 should hold a one-minute prayer to give thanks that markets still work and that people respond in their own self-interested way to whatever economic signals they get.