Busted: Bankers and The Global Economy

October 25, 2008

The Smell of Global Financial Fear

The world of finance doesn’t look pretty at all right now since the time has come to pay the piper. Through the smell of global panic and fear reigns the realization that like all economic cycles, eventually this one will change for the better. When that change happens depends on multiple factors, but sooner or later, the global plight will improve. However, that is not the immediate concern of world leaders. Their accountability and the fear of losing both their power and confidence of the people they lead seems to be at stake. The idea is that the all powerful and nameless investor must be placated at any cost. The reality in many cases is that the governments, central banks and large financial and insurance instituations, to name a few, are the investors. While the world is full of many small investors, the reality is that the parties involved in a global rush to solve the problem are servicing themselves.

Even stranger, the panicked U.S. government has been very quiet on the world scene dealing with their own issues internally in an effort to keep some stability before the Presidential election on November 4th. Instead, American citizens have a marvelous sideshow of Congressional hearings in which many charges and concerns have been made, most of them quite vague. Naturally, little blame has been assigned, but the finger-pointing is legendary. There have been charges by certain lawmakers that information is being withheld in hearings until after the election.

The United States seems no closer to arresting the criminals that have instrumental in bringing the nation and the world to its knees than when they started back in March 2007. The FBI has arrested mostly small-time operators and con men intent on harvesting relatively small deals earlier this summer. The U.S. government has been very hesitant to go beyond the scope of the easy pickings of the small guy. Capital is now so constrained that government intervention seems to be the requirement to save many banking corporations and Corporate Multinationals, notably in the auto industry. Authorities are trying to mask the fear that they feel as they seek to manage the fallout of the entire financial debacle.

Europe already admits to recession. Fear is that cooperation in shoring up banking systems could be threatened as governments begin to turn their attention to reviving domestic demand. What is worse is that shoring up the U.S. financial system through the latest bailout largely depended on a healthy global economy and copious amounts of foreign capital from investors. The global recession makes that old promise seem unlikely at best, furthering coloring negative results. German Finance Minister Peer Steinbrueck holds that “The danger of a collapse is far from over.”

The Middle East economies, unaquainted with working together, have began to consider doing so, recently showing more interest in working through Europe and Asia or perhaps the global summit in New York City next month. George Bush is keeping most ideas about the economic summit next month to himself. However, he stated that agreeing on common principles to reform regulators would be essential to preventing another disaster. The idea of unity is nice, but the reality is that unity in the system is what has brought the system to the brink of collapse. Clearly, more innovative ideas will be required beyond unity and placation of the masses. ~ E. Manning

Advertisements

1 Comment

  1. I really enjoy the content and design of your blog. Have you noticed the Zeitgeist Addendum movie that is on YouTube? It is suggesting the Venus Project as a solution and leading people to take action. The premise is that we need to get away from the monetary system completely.

    Comment by pixelwiki — October 26, 2008 @ 8:31 am


RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Blog at WordPress.com.