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Sarkozy’s speech in Davos 2009

February 5, 2009

The usual jingo-ism and ‘look-what-you-have-done-guys’ talk is strangely missing from Sarkozy’s speech. Its good to see some level headed rationalism in this panic.

In the last few months, virtually every speech on this subject started with criticism of the United States. But I will do nothing of the kind.

I just want to remind you that, just a year ago, American delegates speaking from this rostrum emphasized the US economy’s fundamental stability and its cloudless prospects.

Today, investment banks, the pride of Wall Street, have virtually ceased to exist. In just 12 months, they have posted losses exceeding the profits they made in the last 25 years. This example alone reflects the real situation better than any criticism.

The time for enlightenment has come. We must calmly, and without gloating, assess the root causes of this situation and try to peek into the future.

In our opinion, the crisis was brought about by a combination of several factors.
The existing financial system has failed. Substandard regulation has contributed to the crisis, failing to duly heed tremendous risks.

Add to this colossal disproportions that have accumulated over the last few years. This primarily concerns disproportions between the scale of financial operations and the fundamental value of assets, as well as those between the increased burden on international loans and the sources of their collateral.

Add to this colossal disproportions that have accumulated over the last few years. This primarily concerns disproportions between the scale of financial operations and the fundamental value of assets, as well as those between the increased burden on international loans and the sources of their collateral.

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7 Comments leave one →
  1. February 5, 2009 11:00 am

    Speeches Speeches Speeches, Nothing concrete on the ground to take strong strides and save the word economy.

    • February 5, 2009 11:27 am

      Right… I do agree with you, only partly. I will tell you first, why I think this speech by Sarkozy is good than other rants. At least, I am seeing a sense of rationality in this beyond the petty blame games.

      Now, a much more important facet of this, is we as part and spokes of this global economy should and must realize that people eating,drinking, talking and shaking their heads in comfortable retreats in Swiss Alps can’t avert financial crises. I think, in crises we know about it better than those in ivory towers.

      So what do we do about it:
      Entrepreneurship, Savings and Innovation.
      Only they can help you see through this system

      And what as investors can do about it:
      Dont trust the TV.
      Look for other geographical areas
      Look for extremely safe investment avenues

  2. February 5, 2009 11:30 am

    I agree, we can do much much better and they will have to listen to us…..

  3. February 5, 2009 11:44 am

    🙂 Thank You, for giving it a read.
    So, do you have an email?

  4. February 15, 2009 4:01 pm

    This is just to say hi!
    I found your blog from a comment on Anjali’s blog. Didn’t know you blog too.

    –A OCC fellow.

  5. March 1, 2009 4:04 pm

    Just passing by.Btw, your website have great content!

    _________________________________
    Making Money $150 An Hour

  6. January 29, 2010 2:11 am

    Sarkozy is right on. Can’t ignore the camel in the middle of the living room much longer. Right now in the middle east we are repeating the disastrous mistakes made by the British in India and the Far East in the 18th/19th centuries. It’s just colonialism by another name. The first financial institution that was thought “too big to fail” was the East India Company. Obama is giving it a good try, but he’s trying to bail out the Titanic with a bucket. The clear thinking of people like Sarkozy, who don’t go bonkers over the demise of Ayn Rand capitalism, may lead the way out. Ayn Rand and Sarah Palin–what a team!

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