bank bailout follows financial crisis, following rigor, followed by state rescue, follows ... - In the case of Ireland crisis is repeated, starting from the financial crisis, the process that we know of the Greek crisis her already. It takes one language, as of course the pressure of the financial markets is acceptable. Because the financial markets Ireland have in the truest sense of the word forced into this predicament - and other EU states in the vicinity of an emergency. Ireland is just another case. It can be almost certain probability that it was not the last and this is due to this very ease with which the pressure of financial markets is accepted.
What happens for this reason since the beginning of the financial markets, is a perversion of the term for market-based economic systems known basic relationship between market participants and state and it is quite deliberate. Reminder: The concern about the stability of financial markets forced Ireland and all other states to rescue of gamblers large banks. The small and medium-sized banks, which had largely to do with the casino did nothing, but now suffer under the consequences, should also be remembered, were largely left to themselves, partly charged additionally. In the United States that is the case. There, the regional banks die before him - what the government cares little obvious, and Wall Street certainly not. The worst effects of the massive damage that zockende large banks have left in all the world and its whole extent is still not trans-made transparent - one more point, reminiscent of the be - were not from the States to intercept without a massive public debt. It was there clear from the outset that would hang high public debt as a sword of Damocles over the respective States. Now that the financial markets, governments have made to rescue the great players of the casino and the governments have failed, the casino company to effectively prevent under-they are now that they have come to the brink of national bankruptcy, even for Property of the casino. What it cares "financial markets" that they are the reason for the debt? Again: this is not purely market-based and what is suggested to always be happy, laws following processes, but the fact that the tail wags the dog. Finally, the state is the top Control and regulatory authority of the markets and he perform his task so that they work.
No one can say it would have been impossible to foresee where it would cause if it would succeed in the political decision makers and the Score banks not to emancipate themselves from the financial markets - because that's the point. Until today, instead, in effect, done everything required, "the financial markets." Now the financial market have therefore achieved the costly rescue of States that would not have been necessary if the financial market players have not even driven the cost of refinancing unaffordable heights. In this sense, "the financial markets" even doubly responsible for the Ireland-disaster. The financial markets have achieved everything: they were rescued, they were allowed to continue casino operations, which have states such as Ireland and Others feel that are saved now as desired one by one, because otherwise it would be the gambling in the bond market does not even come up.
But this game is from the perspective of financial markets is far from played out and in order to dispel any misunderstanding: the financial-market participants do not stop it even before it escalates. We know that. The crash of the real estate market is the evidence, the successful insistence on the industry, substantially so to be allowed as before, too. How many documents are needed, so that at last perceived, is that the financial markets an "emergency stop" switch have not yet willing to accept him? is
The next stage of the game: "The financial markets" by the indebted countries calling for strict austerity policy, or rather the EU, the ECB and the IMF do to calm the financial markets - which amounts to the same.
It is important at this point to be exact: "The financial markets" do not mean that the austerity measures impedes their own activities, or even limited. This is then also clear in whose loads is to be saved: At the cost of the general public, that is, the citizen and to the detriment of small and medium-sized companies that are not obviously meant when talking about politicians of what they do for "the economy". "The economy", the big companies and big banks are just the global players. What is astonishing licherweise never discussed - For four decades they are under the heading "Improving international competitiveness," the focus of government policy in developed countries. It must be clearly seen, whereas this level in all developed countries one-sided support of large companies has led today: To a kind of "two-class society" in the economy and financial markets. We have today in developed countries in many industries a few large corporations, on the other hand, many are taking small and medium sized companies that operate either in large companies uninteresting niche or local markets, or that - very often - depending on take of large companies are (for as automotive suppliers).
As for the one-sided focus of policy on the large enterprise segment in the economy and financial markets over a period of four decades in the result means can be illustrated-lichen, if you look at the economies of developed countries presenting as a giant, the today on two different long and strong legs are. The long, strong leg is on the economies of the rest actually. It stands for the segment to take the large-sized and large banks. The shorter, emaciated leg stands for the segment of small and medium-sized companies and banks. With this picture in mind it is also understandable why the banks have never really care for the business with small and medium-sized companies.
Although this is a very poignant description, it can be so that the fundamental structural problem that as a result, all industrialized countries in a similar way to get to the point. This is due to the described Saving formula, states such as Greece and Ireland must now follow, to a very dangerous matters, because it hits the weak leg hard.
It is obvious that this works just like the previous one side also the preservation of the structures or to the stabilization of the strong leg forward Keynesian spending policies. On a sustainable growth path, the so understood and well-run "deficit spending" not being maintained. Draconian austerity at the expense of the public (demand) and the SME sector is, however, the already existing economic and structural, economic difficulties even greater. This is a Anti-growth tumskonzept.
appears in this context to assume a ludicrous, this form of dramatic savings could pave the way for Wrtschaftswachstum and recovery of state finances. Already, it has become clear: both in Greece and Ireland have tightened the austerity package, launched a few months already again. For the first cost-cutting measures ranging from no differently than planned, to achieve the objectives of fiscal consolidation - a result of the economic slowdown, which resulted in the saving measures as well.
How long it will take probably until the economic situation has deteriorated because so far that the Financial markets and the media, the danger of an impending depression strapped states and the feared consequences for the global economy is about? Because you have to see so that more and more states, as abgucken after the Lehman bankruptcy, simply with the neighbors and go to the same course, but thus something almost in equal-step stumble into the same difficulties.
What I want to express: Whether bank rescue, business or economy packages - all governments have done since the financial crisis served to stabilsieren to the strong leg of the ailing giant. It did so temporarily, but only at the price of a further weakening of the already neglected and greatly weakened second leg. The really hot iron, the economies to establish sound economic structure and so to set the stage for dynamic economic development, growth and employment, were not addressed.
"Too Big To Fail" will be therefore expected to back in vogue - in the banking sector and the real economy. Especially because the governments allow it in line with the above-described policy that, in the way of mergers and acquisitions occur continuously even larger corporations, rather than the dangerously high level of dependence of economies to reduce the industrial countries of large corporate segment. The governments thus depriving themselves - not least the pressure of the financial markets - the systematic ways to stabilize their economies by anything other than unconditional support of the large business segment. The fundamental instability of the system can not be resolved, that the state supports the Great and profits in an increasingly weaker demand from the segment of medium-sized businesses in the large companies to be diverted.
The case of Ireland as the reason that the policy is in a dead end. It's not just about escalating government debt. The continuously widening danger is that the large corporate segment one or the other economies of the developed States no longer carries the segment of small and medium-sized companies is too weak to compensate. A terrorist attack, a new stock market crash or some other dramatic event could be the trigger for it. The Lehman collapse has shown how vulnerable is the large company segment. prescribe
fact that the European community and the IMF, Greece and Ireland, a tightening of austerity, is a fresh bow to the financial markets. For the emancipation of the financial markets and a change of policy in the crisis have the courage and strength. This is precisely the reason why we First some concepts for the bailout and to stimulate the economy and now austerity packages of the type described are sold as alternative. This is not the case. Rather, it is facing the goal of stabilizing the economy, financial markets and national budgets to the question of how and where to save and what money is spent. As things go very wrong. Therefore, it is worth arguing about.
See also the following additional attachments:
- test of the European Union: Between Greek crisis, plunging stock prices on Wall Street Plunge Protection Team (by 7:05:10);
- EU economic government - a real step solution or outsourcing the political responsibility for national policy, crisis and saving concepts (v. 22:06:10)
- letter to Beecher Grit (v. 14:07:09)
addition recommended articles:
- opinion: In the hostage of banks (22:11:10)
- fight against debt crisis: the plight alone Handles Portugal ? (v. 24.11.10).
- EU economic government - a real step solution or outsourcing the political responsibility for national policy, crisis and saving concepts (v. 22:06:10)
- letter to Beecher Grit (v. 14:07:09)
addition recommended articles:
- opinion: In the hostage of banks (22:11:10)
- fight against debt crisis: the plight alone Handles Portugal ? (v. 24.11.10).
0 comments:
Post a Comment