“I think the most important thing is Europe and America are both entering into recession at the same time, and the governments failed to take decisive action to stop the decline,” said Francis Lun, managing director of Lyncean Holdings Ltd. in Hong Kong. “Investors are disappointed and fear a global recession. So that’s why investors are getting out of shares.”
Lun also blamed “political squabbling” in the U.S. that is preventing President Barack Obama from spending the money needed to create a jobs program with real impact.
Government-funded interference with markets has had plenty of “real impact” already, which is why we are where we are. More of the same interventionist poison will not effect a cure of the economic illness resulting from the previous doses of that poison.
What is “political squabbling”? It is any even weak dissent from bipartisan socialist assaults on the economy. “Let’s stop being so partisan and political!” Obama and other avid socialists screech. Well, if being partisan and political means slowing down, or perhaps even halting, or perhaps even eventually reversing the frantic partisan, political, socialist agenda of the president and his fellow anti-capitalists, let’s have more of this divisive obstructionist politicking and argumentation. All hail squabbling! Viva la squabbling!
People of Hong Kong, the U.S. federal debt is $14 trillion plus. It got that large because there hasn’t been anywhere near enough debate among American politicians over fundamental political principles. Like whether it’s okay to work for a living and be successful at enabling others to work for a living without being robbed and harassed by government at every turn.
Deliberators about policy should also stop massively contradicting themselves within the space of a single sentence. For example, what are we to make of demands that debt-freighted governments adopt austerity measures…unless they happen to be among those debt-freighted governments charged with spending more billions on bailouts, thereby further ballooning their own debt loads?
Meanwhile, Canada’s finance minister had harsh words for Europe. On Thursday, he warned of a second financial meltdown on the scale of 2008 if Europe doesn’t take decisive action to recapitalize its banks and deal with the Greek debt crisis.
“There’s some justified frustration with respect to the lack of political decisiveness in Europe,” Finance Minister Jim Flaherty said. “The markets are reacting.”
Flaherty said Greece and other severely indebted nations must be made to follow through with austerity programs to bring down spending, and Europe must put up the billions of dollars that will be needed to ensure banks don’t fail.
You’re flailing, Flaherty.