Wednesday,Oct 1 2008, 01:50:23 PM
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The U.S Congress voted down the Bailout proposal , which was agreed upon by both the Democratic and Republican parties. The majority of the opponents although few in number were enough to refuse it as a law. This rings the alarm bells for every American citizens and above all the politicians in the white house. The concern is an over the party frontiers one for the whole American society , even the rest of the world. The reasons why the congressmen and women didn't ratify that is numerous but two major one can be mentioned briefly as below 1- The people , normal citizens and even some of the congressmen and members of the Senate are criticizing the package as unfair to the people of the united States. They argue as if this is a rescue measure , while the Wall Street is in red and falling down only to be paid from the national tax monies , by the people ,,, while there are benefits ,,, that would be owned by the share holders and directors only. people simply got enough of playing the rescue angles for the Wall Street speculators and financial adventurers who only think about their own financial gains. 2- It creates malpractices and threatens the principles of the Capitalism,,, if that would be a tradition to save the private sectors private benefits by the public means. Specially when the public mean is this large that it has never had precedents in the economic history of the United States. 700 billion dollar is not any money , that would be negligible specially if these kinds of failures by the private sector repeating itself. But the problems with the financial system of the United States is so deep now that if nothing would be done , this huge earthquake would have its after-shakes all over the world ,,, specially the European and Asian Financial markets. Europeans have already started to feel these aftershakes ,,, in London and Brussles and even Frankfurt ,,, now other European countries are preparing themselves to receive this aftershake. When they get it and how they confront it is naturally of the national priorities and depending on the well prepared govenrments and their central banks. Buthe effect will be much deeper on some of the Asian Banks that are fudamentally weaker in absorbing the international financial crisis , due to their cunduct of less trustable banking systems. China will be one of the economies that is also going to be affected by the crisis,,, enough to make its downterm economic growth even slower. The same goes for India and other emerging economis ,,, they are also vulnerable towards this aftershak or better to say these aftershakes. Even considering their somewhat more monopolistic political system which makes the decison making process erasier , the fact that their economies would not have the same fundamental like the Americans , puts the future of them into the shadow of uncertainties. Finally the OPEC countries might be the real losers of the aftershakes because of the slowdowns in the World Consumption and later Production patterns and this would affect the Worl Oil Consumption and their economic growth as well. cyrusvadani@msn.com |
