The Mudcat Café TM
Thread #102499   Message #2449085
Posted By: Wolfgang
24-Sep-08 - 01:54 PM
Thread Name: BS: Crash of U.S. Economy
Subject: RE: BS: Crash of U.S. Economy
German reactions to the crisis:
The World Shouldn't Have to Bear the Burden for America's Lapses (transl. from DER SPIEGEL)

Experts have also criticized the American rescue package for a number of other reasons.... "The government is only buying bad risks and, in doing so, nationalizing the losses." Dietrich adds that taxpayers won't share in any of the profits that the government hopes the stabilized market will bring about in the long run.
According to Kooths, instead of buying those responsible for the crisis out of it and calling on other countries to provide funds, the US should create political regulations that will prevent a situation like this from happening again in the future.


The 700B plan is only a short term help increasing the basic problem that the USA spend more than they produce. This crisis will be seen by future historians as the beginning of the downfall of the dollar.

It is a bit puzzling that such a conservative government forgets the market and recourses to Socialist (not in terms of who profits, but in terms of how to use the money) methods. Both, the former Socialist European countries and the Capitalist USA have forgotten that in the long run the value of money depends on productivity. During the last couple of years too many people in the USA have believed that one can make money out of nothing. Some can, for some time, but that comes at a price. I'm only sorry that in too many cases this price is not paid by the profiteers.

Wolfgang