G20 meeting today
Today in Washington there is going to be a meeting of so called “G20″ group. These are 19 largest world economies and the European Union. The heads of states are going to discuss on the financial crisis.
Well, this is a good example of what politicians tend to do when a crisis appears. They say there is a problem and that they need to TALK. Maybe they still think that there is something to be done to stop this crisis. Maybe they know there’s nothing that can be done, but they just need to show they try.
Anyway, it’s sad that so called “public opinion” has so little knowledge about economics and the mechanisms in the economy. The truth is, the recession should have arrived in US few years ago. They didn’t want this recession and they artifficially kept the interest rates too low. The crisis came later, but with a greater force. Now the only thing to do is to wait. The recession and crisis is a normal part of economic cycle - if you fight with it, you can win in a short term, but in the long term you will always lose. And the loss will be more painful.
So, there’s nothing that world leaders can do. They just should stop interrupting the normal market cycle.
Tags: Financial Crisis, g20, interest rates
Financial Crisis | admin | 
November 15, 2008 5:48 pm