Comments on: Is Europe doing enough to fight off recession? http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/ Get to grips with the issues affecting world business Wed, 16 Dec 2009 20:43:39 +0000 http://wordpress.com/ hourly 1 By: Dan Thailand http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8452 Dan Thailand Thu, 18 Dec 2008 04:43:29 +0000 http://business.blogs.cnn.com/?p=939#comment-8452 When oil was $147/barrel the oil producing countries would not increase production. Now it is at $40/barrel and they are crying for a cut. Drill here, drill everywhere, drill now and allow the oil producing countries to get back to what they do best....herd goats. When oil was $147/barrel the oil producing countries would not increase production. Now it is at $40/barrel and they are crying for a cut. Drill here, drill everywhere, drill now and allow the oil producing countries to get back to what they do best....herd goats.

]]> By: Tony Campbell http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8387 Tony Campbell Sun, 14 Dec 2008 20:43:24 +0000 http://business.blogs.cnn.com/?p=939#comment-8387 The 8 republicans that voted against the auto bailout let them pay the bills of the 2.5 millions of people that well be losing there jobs if the auto companys (chrysler and General Motors) doesnt get this bailout The 8 republicans that voted against the auto bailout let them pay the bills of the 2.5 millions of people that well be losing there jobs if the auto companys (chrysler and General Motors) doesnt get this bailout

]]> By: Dr. Muhammad Sadiq http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8375 Dr. Muhammad Sadiq Sun, 14 Dec 2008 14:06:13 +0000 http://business.blogs.cnn.com/?p=939#comment-8375 I would like to make some comments on the bail out plans in different countries as under: Dolling out money to sectors under distress can have completely opposite impacts; a) positive if the money has come from the same or other sectors within the country in the form of taxes or trade surpluses; b) negative if the money has to be borrowed from outside the country or it has to be printed or it has to be collected by increasing taxes on your own industries and people. I would also like to endorse the view point of Mr. Lars Hogland " West is living beyond their means with budget deficits and negative trade balances". This situation cannot continue for long. I would like to make some comments on the bail out plans in different countries as under:
Dolling out money to sectors under distress can have completely opposite impacts; a) positive if the money has come from the same or other sectors within the country in the form of taxes or trade surpluses; b) negative if the money has to be borrowed from outside the country or it has to be printed or it has to be collected by increasing taxes on your own industries and people.

I would also like to endorse the view point of Mr. Lars Hogland " West is living beyond their means with budget deficits and negative trade balances". This situation cannot continue for long.

]]> By: Wade Arnold http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8305 Wade Arnold Fri, 12 Dec 2008 08:14:12 +0000 http://business.blogs.cnn.com/?p=939#comment-8305 I am a retiree and last year I brought a yacht. Unfortunately I was too stupid to notice a hole in the hull. Does this qualify me for a government bailout ? I am a retiree and last year I brought a yacht. Unfortunately I was too stupid to notice a hole in the hull. Does this qualify me for a government bailout ?

]]> By: Wade Arnold http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8301 Wade Arnold Fri, 12 Dec 2008 06:52:04 +0000 http://business.blogs.cnn.com/?p=939#comment-8301 Why are we giving billions to same managers of banks and car makers that were to stupid to manage it properly or too stupid to produce energy saving vehicles like the Toyota Prius in the first place? Toyota Prius sales are in back log ! Lets use bank standard procedure to qualify banks and/or firms and their management "are you credit worthy ?" not if you are the people who got us into this situation ! Why are we giving billions to same managers of banks and car makers that were to stupid to manage it properly or too stupid to produce energy saving vehicles like the Toyota Prius in the first place? Toyota Prius sales are in back log ! Lets use bank standard procedure to qualify banks and/or firms and their management "are you credit worthy ?" not if you are the people who got us into this situation !

]]> By: heldengalerie http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8282 heldengalerie Thu, 11 Dec 2008 19:41:01 +0000 http://business.blogs.cnn.com/?p=939#comment-8282 Greed the lowest point of the human physique. It is a destroyer of people, and economies. What ever happened to the teachings of John Nash? He wins the Noble Prize for Economics but no one seems to follow his wisdom. He taught not to be greedy but to share to let all parties get something. He taught the win, win, win, win situation. I would like to know the schools these CEOs went to that taught them to guide a business an economy and the world into such a crisis. I would like to know why we live in a whats in it for me society. The way out of this mess is for people to start helping each other. Rise to the challenge it is time like these that separate the great minds of wisdom from the minds of greed. Christopher St. John Founder, Helden Galerie The Art of Compassion. Greed the lowest point of the human physique. It is a destroyer of people, and economies. What ever happened to the teachings of John Nash? He wins the Noble Prize for Economics but no one seems to follow his wisdom. He taught not to be greedy but to share to let all parties get something. He taught the win, win, win, win situation. I would like to know the schools these CEOs went to that taught them to guide a business an economy and the world into such a crisis. I would like to know why we live in a whats in it for me society. The way out of this mess is for people to start helping each other. Rise to the challenge it is time like these that separate the great minds of wisdom from the minds of greed.

Christopher St. John
Founder, Helden Galerie
The Art of Compassion.

]]> By: Smriti Lakhotia, SG Analytics http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8259 Smriti Lakhotia, SG Analytics Thu, 11 Dec 2008 13:46:13 +0000 http://business.blogs.cnn.com/?p=939#comment-8259 I think whatever the European governments do, the effect will be lower than the efforts put mainly because the recovery of Eurozone is highly dependent on a strong US recovery. Just like Europe slowed down after the fall in US, it will be pulled along with the US recovery. I think whatever the European governments do, the effect will be lower than the efforts put mainly because the recovery of Eurozone is highly dependent on a strong US recovery. Just like Europe slowed down after the fall in US, it will be pulled along with the US recovery.

]]> By: Dr. Muhammad Sadiq http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8256 Dr. Muhammad Sadiq Thu, 11 Dec 2008 12:52:45 +0000 http://business.blogs.cnn.com/?p=939#comment-8256 Lets face it, West will not be able to compete with China(with centrally controlled capitalism)and even India ( with multiparty democratic capitalism similar to that of west) because of their edge in manpower cost under free world trade order. The growing trade deficit especially that of USA is a clear proof that manufacturing under the present system is less costly in high population and low manpower cost areas. The injection of more money in the economies of West will not solve any recession related problems. As a matter of fact it will create a new crisis related to currencies of west. It is quite likely that if nothing is done to reverse the free world trade order, the currencies of trade surplus economies like China, India and Japan will appreciate rapidly and the currencies of trade deficit countries will devalue rapidly. Ultimately the living standards of West will decline considerably giving rise to political turmoils. The solution of the problem lies in bringing the industry and with it the jobs back to the west. The markets of the West are big enough to justify any large scale production. This will help not only maintain production of high quality products in the West but would also help in maintaining relatively higher living standards for its people. Lets face it, West will not be able to compete with China(with centrally controlled capitalism)and even India ( with multiparty democratic capitalism similar to that of west) because of their edge in manpower cost under free world trade order. The growing trade deficit especially that of USA is a clear proof that manufacturing under the present system is less costly in high population and low manpower cost areas. The injection of more money in the economies of West will not solve any recession related problems. As a matter of fact it will create a new crisis related to currencies of west. It is quite likely that if nothing is done to reverse the free world trade order, the currencies of trade surplus economies like China, India and Japan will appreciate rapidly and the currencies of trade deficit countries will devalue rapidly. Ultimately the living standards of West will decline considerably giving rise to political turmoils.
The solution of the problem lies in bringing the industry and with it the jobs back to the west. The markets of the West are big enough to justify any large scale production. This will help not only maintain production of high quality products in the West but would also help in maintaining relatively higher living standards for its people.

]]> By: Constantin http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8228 Constantin Wed, 10 Dec 2008 20:05:28 +0000 http://business.blogs.cnn.com/?p=939#comment-8228 Well here in Romania , Bucharest ,UE the crisiss did not come and form what i so on the news the economy of Romania is rising !!! So NO CRISISS HERE IN ROMANIA - UE ! Well here in Romania , Bucharest ,UE the crisiss did not come and form what i so on the news the economy of Romania is rising !!! So NO CRISISS HERE IN ROMANIA – UE !

]]> By: Marty R http://business.blogs.cnn.com/2008/12/05/is-enough-being-done-to-soften-impact-of-recession/#comment-8226 Marty R Wed, 10 Dec 2008 19:50:12 +0000 http://business.blogs.cnn.com/?p=939#comment-8226 European governments are actually doing too much, and especially the UK government. This recession is so deep, will be so long, that governments simply don't have the resources to have any significant effect. The recession/depression has bee caused by too much consumption permitted by too much borrowing on the perceived security of overblown assets. Government solution to this is, astonishingly, to increase consumption funded by ever-increasing borrowing whilst trying artificially to support the asset values acting as security. If you wanted to cure an alcoholic, would you offer them free whisky ? Governments are playing the part of headless chickens . They have no idea of what to do, so they take the advice of someone who wrote a book 70 years ago about a quite different set of circumstances. Heaven help us all, the lunatics are running the asylum. European governments are actually doing too much, and especially the UK government.

This recession is so deep, will be so long, that governments simply don't have the resources to have any significant effect. The recession/depression has bee caused by too much consumption permitted by too much borrowing on the perceived security of overblown assets. Government solution to this is, astonishingly, to increase consumption funded by ever-increasing borrowing whilst trying artificially to support the asset values acting as security.

If you wanted to cure an alcoholic, would you offer them free whisky ? Governments are playing the part of headless chickens . They have no idea of what to do, so they take the advice of someone who wrote a book 70 years ago about a quite different set of circumstances.

Heaven help us all, the lunatics are running the asylum.

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