And sure enough it got worse. I have been watching and listening with great interest and a sort of dark amusement to all the worlds politicians and their financial spokespeople. One country after another has jumped on the, “Blame the U.S. banking system” band wagon.
These same governments while criticizing the U.S. have been quick to assure their own countrymen that while there will be some down turn in the local economy it will be nothing like the problems in the U.S.A.
A few days later with Euro Banks being bailed out and bought out by these same governments, the tone has changed dramatically. It would seem that no country is immune to the financial disease that has infected the world economies.
So a new rallying cry has come forth from all governments. “We must restore confidence in the banking industry “! Yes, we all agree, but watching these same governments conduct themselves of late is not restoring confidence at any level . With the exception of Great Britain every European country has come forth to state how solid their financial institutions and lenders were ,only to later admit that several are now ruined and looking for a bailout or buyout. No politician wants to say recession or depression out loud but in a recent U.S. poll more than 75% of those polled believed we are in a recession and heading for a depression.
I have a simple suggestion for the political leaders. If you want to restore confidence in the banking industry, shut up. As one saying goes, “It is better to stay quiet and have people think you don’t know what you are talking about than to speak and confirm that fact”
You want to restore confidence in the banking industry and the rest of us? Tell us that you are listening to and following the advice of men like Warren Buffet. We can believe in someone who has demonstrated great financial abilities for all these years.
Politicians need to realize that there are some very smart people out there and they are not just the financial whiz kids and economists. The people are smart.Give us the bad news,so that we know that you know and we will all get back to work and expect you to do the same. It is the reason we have trial by jury in serious matters. Take twelve people from diverse backgrounds and cultures with only one goal and they will come up with the correct decision 99 times out of a hundred. Show me an economist with that track record .