France, Germany attack US-style capitalism
With more victims of the massive credit crisis emerging daily, Europe and the US look for ways to prevent such a crisis in the future. Comments from the French President, Nicolas Sarkozy, and Germany’s finance minister Peer Steinbruck, clearly know what is to blame for the credit crunch: US-style capitalism. Mister Steinbruck went as far as to say that the US will lose its status as economic superpower as trust in its financial system falters. Germany has in the past tried to convince the United States to increase regulation of its financial sector, to no avail. The US is planning to spend 700 billion-dollars worth of taxpayer’s money to bail out some of its largest financial institutions.
Both France and Germany on Thursday (25 September) said the current financial crisis would leave important marks on the world economy, with French president Nicolas Sarkozy declaring that the under-regulated system we once knew is now “finished,” and German finance minister Peer Steinbruck saying the crisis marks the beginning of a multi-polar world, where the US is no longer a superpower.
Speaking to an audience of some 4,000 supporters in Toulon, France, Mr Sarkozy said the financial turmoil had highlighted the need to re-invent capitalism with a strong dose of morality, as well as to put in place a better regulatory system.
“The idea of the all-powerful market that must not be constrained by any rules, by any political intervention, was mad. The idea that markets were always right was mad,” Mr Sarkozy said.
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Administrator @ September 29, 2008