I think things could work with central governments of various strengths. The key is for them to be even-handed.

The problem in the US is that the government has been co-opted by a subset of the monied interests. Under the guise of "protecting the financial system," it's making sure that the losers get bailed out. That would be problematic, even if the money to do so came from the winners. But it isn't. The money is coming from everyone.

The whole "privatized profits but socialized losses" system is the main way in which the US is falling short of offering the rule of law.