American hypocrisy

A few weeks ago, the whole world held its breath. Inspired by Paul Volcker, former Fed chief, Barack Obama has solemnly expressed its intention to overhaul American finance. Consider the following: limiting the size of banks and investment ban on own account on the riskiest markets (hedge funds and private equity). What every economist who removed the springs of the crisis had dreamed, the American president should he have done? Nothing is less certain. First, the Volcker plan leaves out many gray areas of the U.S. financial system. So it is with many “Bermuda triangle” regulations that allow entire sectors of American finance (such as the derivatives market) to escape almost any check. Thus it is also the nagging problem of bonuses for traders, which poisons the trading floor for many months. Let us stop deluding themselves in this field. 124 billion dollars in bonuses awarded by the 34 largest U.S. banks: it’s the equivalent of official development assistance or aid from the North to South, and twice the profit made in 2009 by all companies in the CAC 40! “Business as usual! “
But there is perhaps not essential. For the most part is, since the end of the Second World War at least, the ability of the U.S. government to hide behind the Congress to indefinitely reforms do not wish to implement. We can not claim to understand the United States if one considers that the Parliament of this country is as impotent as it is in France. In the United States, Congress dictates, only the tempo of reforms. So, just lost a congressional seat in Massachusetts for Barack Obama, threatened by the sword of Damocles of the midterm elections, is ready to compromise: Show loud and clear his willingness to bend Wall Street to please his electorate while trusting “his” Congress to defeat this attempt moralization of American finance. This is the (sad) reality of democracy in the United States, which regularly relativize the sincerity of the reformist impulses of Barack Obama.
But we can go even further and consider that Volcker is part of an overall plan that aims to strengthen the competitive ability of American finance. Judge for yourself: it is not a raft of reforms initiated by the three G20 (which have met since October 2008) which has resulted in an American retreat. The application of prudential rules of the Bank for International Settlements, known under the pseudonym of “Basel II”? Later perhaps. The promotion of “leverage ratio” (ratio that favors American banks from European banks)? An absolute necessity for Washington. The refusal to seriously regulate the derivatives markets? A profession of faith. The refusal of cooperation with the European authorities in accounting rules? Even punishment, same reason. The obstruction to any regulation of rating agencies, including the two world leaders are American (Moody’s and Standard & Poor’s)? An absolute evidence. Attempts to implode the European model of “universal banking” (which combines the most hazardous and those of the commercial bank, the less) by pushing the formal separation of commercial banking business and banking ? What more natural? These six examples demonstrate that the United States, undermined by its industrialization, will do everything to protect their finances.
What to do in this context, Europe in general and France in particular? First stand firm on the principles defined by the three G20, which had the merit of addressing – finally-sensitive subjects. Then do not lower its guard prescribed by better regulation but not alone. Finally, calling for help from the emerging global governance, and particularly China, which have been excluded from it by the United States for over twenty years, to form a tandem-emerging Europe can do Finally, fold the American finance, the primary cause of the crisis and the first “shooter of chestnuts from the fire” for over six months … This is not win but at least we can dream!

Crisis: they are both deceived by our economists!

No, I reassure you right away: this is not Frederic Lefebvre … Even if it is large provider, it is alas! not only to utter crap so beautiful. It would be many. The worst of the matter is no doubt it is the work of an alleged “economist”!
By sheer chance I had kept the article in its paper version, probably because I augured that is contradicted by the facts and I would serve. I found one from Alain Faujas written three weeks later and is about as prescient chronicle of the disaster that should not happen … Heaven! What has happened to my crystal ball?
But then, January 2, 2008 Gatinois Claire has collected about a very distinguished economist certainly – David Naude at Deutsche Bank – who thought the U.S. would avoid recession! and thus prophesied: “There will be no crash in 2008” … The title of the article was a gem in itself: “Even though the crisis has plunged the world stock markets in a volatile situation, the economy remains robust “…
Even when he acknowledged in the article that the situation was serious, the worst was possible that the failure of a major U.S. bank … “The financial sector was hit but the rest of the economy is. Growth has remained robust in the United States. In Europe the figures were startling. In addition, companies are still in good health, low debt and profitable “… How can I be so blind?
Still in Le Monde and three weeks later, Alain Faujas should be an incredible show, and stainless incorrigible optimism in an article in the January 18, 2008 The global economy should be resilient in 2008 when he relied on the analysis of an economist Ultra Shine – Francois Bourguignon, Director of the Paris School of Economics! How many blind idiots he formed in his image? – Who was not afraid to say that “strong shocks are in place, as the huge reserves accumulated by Asian countries and oil countries. Less savings in Asia and more savings in the United States, it is far from a global crisis but rather a phase of adjustment absolutely necessary, given the enormous imbalances that we had accumulated during the five beautiful years that the global economy comes to know “… Close the ban!
The peroration of Alain Faujas is no less astonishing blindness that also asinien psittaci … Citing Luca Silipo, head of the Economics Department of Natixis – a joint subsidiary of the Caisse d’Epargne and Banques Populaires which could be measured rigorous management! A colossal loss of 948 million euros in H1 2008, ie before the crash of September 21, 2008 … In two days, Natixis had lost 28.4% of its value mainly because of the 109 million Euro Securities Lehman Brothers investment bank perished in the storm, it held as an article of Liberation French banks shaken – that the strength of the global economy is due to the international business …!