The German view on to the financial crisis in America I
The Financial Crisis in the USA shakes the world’s financial market.
I spoke with a good friend of mine, Stefan, who I know from school and he gave me a nice statement, what he – as a professed socialist and sociology and politics student – thinks about the situation.
I spoke with him in German. Here is what he said – I translated it into English:
“Now raging a worldwide financial crisis, the assets in billions of dollars destroyed. Is this the end of capitalism? I would say, there is a crisis, but not a collapse. Cynics might say: Some lose money, others win it.
Nevertheless, this crisis is obviously seriously – it shows where the development of capitalism had lead. Both of us, Americans and Germans, are living in a society that is dominated by shareholders.
Even if the US-government starts to nationalize the banks, they still act accordingly to the money and to those who own it. You can see it: every time when a rescue packages is decided, the stock-market prices rise. What about the “Deficit Spending”? First there was the systematical destroying of the classic welfare state and then the government tried to ‘calm’ the poor people with cheap mortgages. Who profits? The banks. They will be rescued during the next crisis, when the people cannot pay their credit card debts.
You can see, that in times of globalization, the financial market cannot be controlled by one nation only. The situation touches everyone, every nation.
I, as a poltical active student from Germany, would say, the financial crisis is the last coffin nail for the great power fantasies of the United States.
Of course the presidential candidate McCain had another view on it. Barack Obama is my wish candidate for the White House – but, in fact, it doesn’t matter now. What ever their plans are – now they have to keep in mind, that there is a rescue packages coming up, which will be worth 700 billion dollars.
Neither plans like invading Iran, nor plans of creating a new welfare system, can be realized, because there is simply a lack of money.
Now, there are limits for the US-politics: The war in Iraq and the financial crisis are some heavy weights to lift. The belief that the USA might be the world leader gets more and more absurd.
This crisis let me think much further – I am thinking about a revolution: Climate change, food shortage and the financial crisis. Where are the revolutionaries? The anti-globalization activists came together in Malmö this week. They are not more than 8,000 people there. I really hope, that this movement will become bigger – the people must show, that they keep their eyes open, that they watch the governments.
But coming back to the impact of the “American” financial crisis on to the world. Yes, I think, that this is a bad crisis. Our Chcancellor, Angela Merkel said, that the break-down of the financial market would have a terrible impact on to the general public in Germany. If the circuits of the money comes to a sudden stop, it directly threatens the real economy, not only in America, but in Europe, too - and hence jobs and tax revenues.
What are the plans of the German government? The rescue of “Hypo Real Estate Bank” with public funds. Now you are asking why should an American financial crisis have impact on to German banks? You, the reader, have to know, that the “Hypo Real Estate Group” in an investor, who invests money in real estates in over-seas. So they did in America. During the financial crisis in the USA, they lost money and are not able to pay their debts. To save the group and it’s bank the German government and the CEOs of the biggest banks in Germany decided at 9/28/08 to put a guarantee for the HREB, which will balance the failures. Let’s see if this is the right way.
The German Minister of Finance, Peer Steinbrück, apparently wants for the given state aid significantly, less return service, as the United States do. But new laws for banks? Not yet.
The people in Germany are very angry about that State subsidies. But this does not have an direct impact on the next elections in Germany, because they will be in 2009 – the crisis will be out of the voters’ minds. But look at America: the influence of the voter’s anger on to the American elections will be obvious in less than 35 days.”
The Financial Crisis in the USA shakes the world’s financial market.
I spoke with a good friend of mine, Stefan, who I know from school and he gave me a nice statement, what he – as a professed socialist and sociology and politics student – thinks about the situation.
I spoke with him in German. Here is what he said – I translated it into English:
“Now raging a worldwide financial crisis, the assets in billions of dollars destroyed. Is this the end of capitalism? I would say, there is a crisis, but not a collapse. Cynics might say: Some lose money, others win it.
Nevertheless, this crisis is obviously seriously – it shows where the development of capitalism had lead. Both of us, Americans and Germans, are living in a society that is dominated by shareholders.
Even if the US-government starts to nationalize the banks, they still act accordingly to the money and to those who own it. You can see it: every time when a rescue packages is decided, the stock-market prices rise. What about the “Deficit Spending”? First there was the systematical destroying of the classic welfare state and then the government tried to ‘calm’ the poor people with cheap mortgages. Who profits? The banks. They will be rescued during the next crisis, when the people cannot pay their credit card debts.
You can see, that in times of globalization, the financial market cannot be controlled by one nation only. The situation touches everyone, every nation.
I, as a poltical active student from Germany, would say, the financial crisis is the last coffin nail for the great power fantasies of the United States.
Of course the presidential candidate McCain had another view on it. Barack Obama is my wish candidate for the White House – but, in fact, it doesn’t matter now. What ever their plans are – now they have to keep in mind, that there is a rescue packages coming up, which will be worth 700 billion dollars.
Neither plans like invading Iran, nor plans of creating a new welfare system, can be realized, because there is simply a lack of money.
Now, there are limits for the US-politics: The war in Iraq and the financial crisis are some heavy weights to lift. The belief that the USA might be the world leader gets more and more absurd.
This crisis let me think much further – I am thinking about a revolution: Climate change, food shortage and the financial crisis. Where are the revolutionaries? The anti-globalization activists came together in Malmö this week. They are not more than 8,000 people there. I really hope, that this movement will become bigger – the people must show, that they keep their eyes open, that they watch the governments.
But coming back to the impact of the “American” financial crisis on to the world. Yes, I think, that this is a bad crisis. Our Chcancellor, Angela Merkel said, that the break-down of the financial market would have a terrible impact on to the general public in Germany. If the circuits of the money comes to a sudden stop, it directly threatens the real economy, not only in America, but in Europe, too - and hence jobs and tax revenues.
What are the plans of the German government? The rescue of “Hypo Real Estate Bank” with public funds. Now you are asking why should an American financial crisis have impact on to German banks? You, the reader, have to know, that the “Hypo Real Estate Group” in an investor, who invests money in real estates in over-seas. So they did in America. During the financial crisis in the USA, they lost money and are not able to pay their debts. To save the group and it’s bank the German government and the CEOs of the biggest banks in Germany decided at 9/28/08 to put a guarantee for the HREB, which will balance the failures. Let’s see if this is the right way.
The German Minister of Finance, Peer Steinbrück, apparently wants for the given state aid significantly, less return service, as the United States do. But new laws for banks? Not yet.
The people in Germany are very angry about that State subsidies. But this does not have an direct impact on the next elections in Germany, because they will be in 2009 – the crisis will be out of the voters’ minds. But look at America: the influence of the voter’s anger on to the American elections will be obvious in less than 35 days.”
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