By design, the European Union and the political regimes of its constituent members were set up to be more deliberate and consensus-driven than the United States—the better to avoid repeats of the 1930s. But in a time of crisis, this diffusion of power is a problem. One may call into question the capabilities of American's financial leaders—Treasury Secretary Henry Paulson, Federal Reserve chairman Ben Bernanke, et al. But at least we know who they are. Europe has no official or unofficial economic leader. There is no European Treasury Department that can organize a common response. Jean-Claude Trichet, head of the European Central Bank, can't tap into a massive balance sheet the way his American counterpart can. The result has been crisis management by committee. Italian Prime Minister Silvio Berlusconi wants a joint European fund to rescue European banks. To which German Chancellor Angela Merkel says: Nein!
Europe's travails may provoke a few smirks on this side of the Atlantic, and we're entitled to it. Russian magnates, who last month were buying up trophy assets, are facing margin calls. The dollar is up more than 15 percent against the pound and euro since the summer. But we shouldn't indulge in too much schadenfreude. Being around other sick people doesn't mean you'll get better any sooner. As the title of Der Spiegel's essay warned, recent events should indeed signal "the end of arrogance" of financial systems—on both sides of the Atlantic.
© 2008
This is Good that Wall Street heads for big decline as recession fears stir panic. In order to get out of an recession is to allow the markets around the world to go under and let Infation increase as far as it can go. Once the world is in a tailspin, like the depression of the '30's, a world war is needed to revive the global economy. This is how jobs are produced and people will have money to spend, the markets will begin to improve.
To have a better understanding of what caused the financial crisis and how we can remedy it please read a post titled "Why is the United States undergoing a political and Financial Crisis?" and watch the third video down labeled "The Money Masters" at: http://www.theartdeptchronicles.blogspot.com
http://www.theartdeptchronicles.blogspot.com
To have a better understanding of what caused the financial crisis and how we can remedy it please read a post titled "Why is the United States undergoing a political and Financial Crisis?" and watch the third video down labeled "The Money Masters" at: http:;//www.theartdeptchronicles.blogspot.com
http://www.theartdeptchronicles.blogspot.com
The crisis has forced the United States to confront bad habits developed over the past few decades. If we can kick those habits, today's pain will translate into gains.
MEDIA Just a year after buying The Wall Street Journal, the press rapscallion has revitalized the fusty paper.
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