Let us hope the leaders of the world heed such brilliant thinkers as Mohamed El-Erian
Active Governments Must Work Together By Mohamed El-Erian
I view international cooperation as one of the four key components to digging out from under the economic catastrophe. The other three:
- Nationalization (in whatever form it can be packaged and presented to the populace) of the financial industry
- Implementation of an effective system of financial regulation that can work to prevent the disasters of the past from recurring and can also inspire investor confidence. This will enable privatizations to occur after a healing period of several years.
- Implementation of fiscal plans by the world’s individual governments (led by the US and other developed nations) that can maintain (restore?) confidence in the long-term viability of governmental budgets.
I am very sad to say that there has been little to no progress on any of these four areas since the financial system began imploding in late 2007 and there have been scant signs of progress since the election of Obama. This is simply a commentary on what has occurred so far, it is not to say we are without hope for the future.
