Friday, October 03, 2008

Strong Leadership Needed, Not Cure-Alls

- Oakland Statue-Atlanta, GA

The current global financial crisis is among the greatest challenges to the world economy. Unlike past financial crises which were confined to particular regions, the current financial contagion is quickly spreading across continents. The world is facing a deep and prolonged recession. Many assets of banks in developed countries are freezing, they are having greater difficulty in turning their investments into cash.

A global lack of investor confidence is at the heart of the current problem. Once investor confidence is lost, it is very hard to restore. I think that time should not be wasted debating what new institutions or global financial regimes are needed for the future. Rather, all energy must be spent finding solutions to the present situation. In other words, the only way out of the financial crisis is for the U.S. to show leadership. Failure to act quickly will carry the risk of plunging the world into a downward spiral that could turn into the strongest recession or worse.

Being one of the emerging markets, what kind of outlook for Turkey will appear while bringing the most important question to the mind: Will anyone be around to bail Turkey out?

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  1. Hi Nihal! Things are getting more difficult every day... :( As for the US to «show leadership» in the financial markets, we probably had already enough of that and the result is there to be seen... ;) We'll see what the bailout will bring...
    Forgetting it; Love is in the air in Anatolia. Great!! Chocolate? Great!! But the best is that you also love the Alvin Ailey company! Can't forget the first time I saw them performing in NYC. Awesome!
    Wish you a great weekend!
    Blogtrotter, now Deep in Crete!

  2. Nihal,
    I can only hope that our governments approval of the bail-out plan will help the financial both here and abroad. Ideally, I would hope that further "tumble-down" could be avoided, but my fear, though, is that the "rescue" has come to late and that more "tumble-down" will take place and there will be years of hard financial times ahead. I'm just a 59 year old wife, mother, quilter, artisan who has no political agenda here. I was interested to read your post and the accompanying article.

  3. Oh it's all terrible but maybe it was unavoidable.
    Beside all that, your picture is wonderful I love the colors.

  4. Nihal, You are right, as if the financial woes of the US are bad enough, they are reverberating all over the world. The "bail out" is not the answer, as far as I am concerned. It's like putting a cup pof water on a forest fire. The only way it passed was by adding the usual "pork barrel" appropriations - that would not pass in the daylight - to the package. These are no different that bribes. We are not being represented properly or fairly.

  5. I worry that the bail out with all the added last minute bits will not do the trick. The problem seems to be to be the result of greed, both on the lenders part and the borrowers. If they had done the numbers they could have seen they wouldn't work.

    Now we all pay - and will continue to do so.