It appears that Germany got into a little bit of economic trouble this past week.
The government bailed out Hypo Real Estate for sixty-nine billion dollars. This is the first German company to seek rescue from the government. In response, to make their citizen’s feel finically secure and their investments safe, Germany has infused a bunch of money into the banking system. The Financial Ministry spokesman, Torsten Albig, said the guarantee covered $785 billion in investments. This sounds like a good chunk of money. I’d feel safe.
Angela Merkel, the chancellor, announced that she will not allow the mistakes of one company to destroy the German economy. Chancellor Merkel saying this is vital for the country’s financial future. How long did it take for the United State’s president to declare it was all going to be okay again?
I believe she will not let it get as far as the United States’ financial troubles. They have us for a role model to follow through this crisis. How could they let something so similar to what happened in the US happen to their country?
We will see in the upcoming days how this plays out in Germany. So far so good, the country seems to be acting quickly and efficiently.
As for Europe as a whole, that’s another story.
Germany is also having major party disputes.
Angela Merkel, the chancellor, announced that she will not allow the mistakes of one company to destroy the German economy.
It's a shame that the American Congress didn't feel the same way about their citizens. Actions speak louder than words.
I have been trying to understand why a powerful nation such as the U.S. could allow itself to get into this financial debacle in the first place. Naturally, the world (i.e., Germany) follows in it's financial retrogression! I've listened to the experts. I've read the news articles. It's all the same mumbo-jumbo and virtually always the blame or source of the nations woes fall at the feet of the Wall Street Gurus.
Interestingly though, I stumbled upon this guy over at the Ayn Rand Institute and he had some pretty cool explanation as to why the nation got into this mess and really who is to blame. The jury's still out with me, but this guy makes for a pretty convincing argument. Check it out, I included part of the article:
Are We All Socialists Now?
October 10, 2008
Washington, D.C. --The Treasury Department, as part of its ongoing assumption of control over the financial industry, is preparing to inject cash into U.S. banks in exchange for preferred shares of bank stock.
“Are we all socialists now?” said Yaron Brook, executive director of the Ayn Rand Center for Individual Rights. “Have we learned nothing from the devastation that socialist policies wrought worldwide in the twentieth century? Government intervention distorts markets and causes economic dislocations, no matter whether Uncle Sam controls private companies by regulation or assumes public ownership outright.
“A crisis doesn’t transform poison into medicine. Over decades, government manipulation of money, credit, and mortgages poisoned this economy and left it dangerously weak. Now Hank Paulson and his comrades are hooking up IV tubes filled with more of the same poison--bailouts, loan guarantees, cheap money, and more burdensome regulations--and hoping we will lie still and trust in their cure.
“But the real cure is capitalism, not more doses of socialism. We should act quickly to put government in its place, by rolling back the interventionist measures that caused the present emergency. Government’s proper role is to punish fraud and enforce contracts, not to own and manage the economy. We cannot achieve financial health unless we are willing to free the markets.”
Hope you found this guys rhetoric interesting and insightful...
out!