From London to Berlin, governments are clinging to a piecemeal approach. The British and the Germans have resisted a broader solution, because they fear they will end up rescuing their neighbors.
A weekend meeting of European leaders in Paris, called by President Nicolas Sarkozy, ended with a pledge that Europe would not countenance a bank failure like that of Lehman Brothers, but little else.
Part of the problem, experts said, is the nature of this crisis: bailouts of banks are costly and unpopular with taxpayers — even more so, as in Europe, where burden sharing is a perennial sore point.
“Taxpayers won’t agree to bail out the banking system of other countries,” said Thomas Mayer, the chief European economist at Deutsche Bank in London. “Not even in Europe, where you have a neutral framework, could you get people to cooperate on a joint effort.”
As the problems in Europe have worsened, the crisis has taken on an “every country for itself” quality. When Ireland placed a guarantee on all bank deposits and debt last week, it angered neighbors, who feared capital would flee their banks to the safer haven of Dublin. Now, Germany, Sweden, Denmark and Austria have all pledged to guarantee deposits.
|||I'm not normally an isolationist by any stretch of the imagination, but the U.S. needs to get it's own financial house in order before committing funds to foreign economic problems.
The economic crisis facing America is happening all across the globe. I believe the best medicine for the worldwide financial problem is for the United States to get it's own house in order first.
And I must admit that I am a bit tired of helping other countries again and again throughout our history and getting nothing but trashed by them for our troubles.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment