Money Do As We Say, Not As We Do
posted by September 24 at 11:03 AMon
World leaders, apparently, are totally pissed that the US is bailing out its own banking system. This, after the US (via the Chicago School) has spent decades telling other countries (especially Third World countries) to not subsidize their failing economies, to let banks fail and markets go bananas, in order to instill market discipline.
First, let your banks go against the wall, they said, and then we’ll give you some aid.
Now that the US is ignoring its own advice, world leaders are carpe-ing the diem and wondering aloud whether the US hasn’t been wrong about free-market discipline all along.
The secretary general of the UN, Ban Ki Moon:
“The global financial crisis endangers all our work… We need a new understanding on business ethics and governance, with more compassion and less uncritical faith in the ‘magic’ of markets.”
The president of France:
President Nicolas Sarkozy of France described the crisis as the worst financial mess since the Depression and the financial system as “insane.”
The president of Brazil:
“We must not allow the burden of the boundless greed of a few to be shouldered by all,” President Luiz Inácio Lula da Silva of Brazil said in an opening speech Tuesday that reflected the tone of the [UN] gathering.
The minister from Britain politely noted that the US bailing itself out would be in everyone’s best interest—but the rest of the world is hopping mad.
Bungling in Iraq, bungling our economy, and North Korea giving us the finger by restarting its weapons program and barring inspectors—the US is losing leverage by the day.