Another German view on to the financial crisis in America
After talking to a friend of mine yesterday, who is really in to finances and the world politics, I had a conversation with another good German friend of mine as the financial matter is still so much of the news here in America, who is spending the next months in Peru, participating at social projects.
She has a less "analyzing" and "professional" point of view on to the things that happen here.
This is what Sophia said (again, my translation into English):
"I just wondered if there is any sense to "rescue" a financial system that is obviously ailing. The systems in the USA are created to show huge earnings to satisfy the shareholders. Everyone must see that this "winnings bubble" will burst someday - and now it happened. The USA does not have any money to invest in social projects, welfare, health care or education - but suddenly there are 700 Billion Dollars. The USA will "burn" 700 Billion Dollar, just to feed the glutton, the giants, which are obviously dying. 700 Billion US-Dollar - that's $3,000 Dollars for each American citizen. Where are the earnings from the last good years?
When I think about this situation, I see a drunk gambler in Las Vegas, who lost all his money and tries to find someone to give him more money, that he can gamble again. "Next time I'll win! I am sure!"
I am glad to see that the wrong turn of the Republican government is discovered before the elections. But I feel sorry for the Democrats and Mr. Obama. Even if they win the elections, there won't be any time to celebrate - the new president must clean up the mess the last government leaves behind.
I think not a single cent should be invested in the financial system of the USA - it is ailing and cannot be rescued by putting more and more money into it. It would be a hard time for the American economy to manage this crisis without having billions to revert on - every country will go through crisis - but it would be much more long-lasting to "rescue" a system with prospective programs, than with hundrets of billions of dollars that will be blown in the wind of the dying financial system.
I do not know enough about the American society - but I read an article some weeks ago which says how the different nations handle their money. Germans like to save their money. They want to have security, they want to have some money for bad times. Germans do not like buying on credit - even this mentality will change in a few years, I think.In comparison to this mentality, the article said, the average American has got 5 credit cards or mortgages. Many credit cards must be paid with the earned money - if there is a shortage, there is no chance to pay their debts, for example, the mortgage for the house.
It is not surprising then, that the real estate crisis came up some months ago!
I really hope, and especially for the people, that this crisis will be solved on one way or the other. But making more debts to pay the other's debts - this is a fishy system, which will not work in the long run."
After talking to a friend of mine yesterday, who is really in to finances and the world politics, I had a conversation with another good German friend of mine as the financial matter is still so much of the news here in America, who is spending the next months in Peru, participating at social projects.
She has a less "analyzing" and "professional" point of view on to the things that happen here.
This is what Sophia said (again, my translation into English):
"I just wondered if there is any sense to "rescue" a financial system that is obviously ailing. The systems in the USA are created to show huge earnings to satisfy the shareholders. Everyone must see that this "winnings bubble" will burst someday - and now it happened. The USA does not have any money to invest in social projects, welfare, health care or education - but suddenly there are 700 Billion Dollars. The USA will "burn" 700 Billion Dollar, just to feed the glutton, the giants, which are obviously dying. 700 Billion US-Dollar - that's $3,000 Dollars for each American citizen. Where are the earnings from the last good years?
When I think about this situation, I see a drunk gambler in Las Vegas, who lost all his money and tries to find someone to give him more money, that he can gamble again. "Next time I'll win! I am sure!"
I am glad to see that the wrong turn of the Republican government is discovered before the elections. But I feel sorry for the Democrats and Mr. Obama. Even if they win the elections, there won't be any time to celebrate - the new president must clean up the mess the last government leaves behind.
I think not a single cent should be invested in the financial system of the USA - it is ailing and cannot be rescued by putting more and more money into it. It would be a hard time for the American economy to manage this crisis without having billions to revert on - every country will go through crisis - but it would be much more long-lasting to "rescue" a system with prospective programs, than with hundrets of billions of dollars that will be blown in the wind of the dying financial system.
I do not know enough about the American society - but I read an article some weeks ago which says how the different nations handle their money. Germans like to save their money. They want to have security, they want to have some money for bad times. Germans do not like buying on credit - even this mentality will change in a few years, I think.In comparison to this mentality, the article said, the average American has got 5 credit cards or mortgages. Many credit cards must be paid with the earned money - if there is a shortage, there is no chance to pay their debts, for example, the mortgage for the house.
It is not surprising then, that the real estate crisis came up some months ago!
I really hope, and especially for the people, that this crisis will be solved on one way or the other. But making more debts to pay the other's debts - this is a fishy system, which will not work in the long run."
No comments:
Post a Comment