When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Thursday, August 18, 2011

A Crisis of Confidence in what?

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A "Crisis of Confidence;" a Crisis of Confidence in what?
Not the markets--that's just a symptom or result. What we're really talking about is a systemic crisis of confidence in governments—primarily in the U.S. and Eurozone. Tripped up by globalisation - FT.com --
Among the key points made by Jeffrey Sachs:

Neither the US nor Europe has even properly diagnosed the core problem, namely that both regions are being whipsawed by globalisation.

Jobs for low-skilled workers in manufacturing, and new investments in large swaths of industry, have been lost to international competition

The path to recovery now lies not in a new housing bubble, but in upgraded skills, increased exports and public investments in infrastructure and low-carbon energy. Instead, the US and Europe have veered between dead-end, consumption-oriented stimulus packages and austerity without a vision for investment. 

The full article can be found at: http://www.ft.com/cms/s/0/2b9dab2e-c817-11e0-9501-00144feabdc0.html  (registration required)

The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects