Reactions to the Financial Crisis
How people from different continents, cultures and regions will react to a given situation? We can do this using the example of an analysis of the classic – the response of Americans and Europeans on the financial crisis at hand. Europe has taken a long time to understand and accept that they are affected by the crisis in the United States. No one can argue that banks are actually interconnected and are facing the challenges of trade liberalization and other free market policies. The global financial system seems on a collision with a unified economy in the tip, but very strongly that they falter. There is no doubt that are the bases and foundations on weak pillars, and emphasized the need for a better system.
The mortgage crisis when it began, has created a panic among Americans and the government with a negative impact on Wall Street. The government has lost its vision and ability to resolve in their efforts to the crisis of bad mortgage loans that led to the purchase of hundreds of billions of dollars in bad loans. They lost their analytical capacity to recognize a very serious threat to the system came into the region, in addition to the loss of a large amount of investment. Thus, a decrease was 20% on Wall Street and has created more panic. The Americans began to blame the system, corrupt politicians involved and ambivalent because they are interested in the parties’ interest in the nation. “They were not assume that a little more money than them. Personal debt in the United States an average of $ 20,000 per household, with an average savings rate of 0% (from 10.8% in 1984). The world can not ignore the disturbing signs that could be a decline in the global financial system earlier than anyone could understand.
Europeans have long face reality, but Gordon Brown, British Prime Minister was created as a wise man, when she decided to leave the serious issue of the recapitalization of banks and address liquidity in money markets. From the outset, state ownership of industry in Europe dominate. It took a little further with the mover of British natural and has invested $ 250 billion in banks, the best rescue plan ever. The markets have reacted accordingly, and ended the week up 8.2% against 4.5% on Wall Street. European capitalism seems preferable to a system able to participate in face of a crisis. In the UK there is a serious examination by the media and politicians on the important factors that somewhere else for these commitments to one side against the Americans, the blame.
The France and Germany, Spain, Switzerland and England set the order of 1 trillion U.S. dollars and hence their normal glacial approach to change, with a policy. Americans have long understood that, as a liberal to be pragmatic and would have marked the key. They followed the course organized by the Europeans. In the global economy, Europe has a new sense of leadership and created the United States could lose its place, the flag bearer of trade liberalization. Europeans need to increase your confidence with the Americans reduced their overconfidence. Gordon Brown has resulted in El Salvador, the world in these difficult times. It seems there is new prospects on the horizon, and we keep a lookout for him.
