Capitalism Vs Socialism - Part1

With so much talk about recession, job loss these days, I was wondering about Capitalism Vs Socialism and where is the world heading for in the future?.

Whats Socialism / Capitalism mean ?

More than a decade now, capitalism has been the world’s dominant economic system. Which means production and distribution are owned by individuals, private ownership and free enterprise and competition between enterprises are believed to lead to more efficiency, lower prices, better products and rising prosperity. On the other hand, Socialism advocates the ownership and control of the means of production and industry by the community as a whole: the community is believed to be both more just and more efficient through central planning.

Indian move towards capitalism....
India's freedom struggle was more towards non violence and more democratic in nature. Hence, after independence India was oriented towards socialism, many public sector were created as democracy was related to 'for people by the people'. India's previous generation leaders thought more towards socialism, which is definetly a boon if it work effeciently. However, due to various factors many public sector turned into loss making ones.

In late 80's, Indian economy was in bad shape and hence no new public sector undertaking were promoted and around the same time USSR started crumbling, at the same time western countries was more towards capitalism and were on lookout to sell its products & services and India had a huge market potential; India was also looking at IMF for its financial needs.

Indian market liberalization started in late 1980's, which paved the way for capitalism which was practised in west, around same time collapse of USSR started and it collapsed completely in 1991 after which not much was talked about socialism and it was thought to be a failed model.

Is Western economy moving towards socialism?....
Capitalism gained ground and it was working effectively until the financial 'tsunami ' took over recently, and I believe this recession was created more out of greed. In most cases, capitalism lead to greediness, they innovated techniques and more importantly they were able to sell these techniques and thereby started creating a bubble in commodities and real estate markets. When the bubble burst most of the industry started getting affected slowly and eventually lead to liquidity crunch. Most of the western companies revenue went southwards and they were on look out for finance, but unfortunately US banks and financial sectors were equally hit badly due to toxic asset which were mortgaged to it at a higher value during boom times.

Eventually, not only the US industries but also the US banks are now looking at the US Govt to bail them out from the mess. In the last few months US Tax payer money is being used bail out banks. What is interesting is after failure of Enron, Sarbanes Oxley compliance brought into play and in spite of this companies had failed. US is now in process of putting more control in place since Tax payer money is being used for bail out.

So the question is US moving towards Socialism, which was once thought to be the captain of capitalism? and would eventually world economy move towards socialism?

Will continue on this later and welcome reader's thoughts and feedback....