In the News (translated from NEWSru.com): Economists believe that the worst is yet to come. Professor of Economics at NYU, N. Rubini, said: “My estimation of the losses suffered by American banks is 3.7 trillion dollars. The global recession will turn into a long-term depression, lasting many years, unless we take the proper measures.”
The policy that fixates the currency rate in Russia, Kazakhstan, the Baltic States, Bulgaria, and Romania will encounter a currency crisis. Russia should not have “defended the ruble.”
The Head Economist of the Organization of Economic Cooperation and Development, Klaus Schmidt–Gebel, said, “The fall of GDP in the world will continue into 2009, and even 2010.” The President of the International Institute of Freedom and Democracy, Hernando de Soto, said, “The current crisis is a crisis of trust. We don’t trust anyone in the market.”
Governments that pump the market with additional liquidity or provide tax incentives to the economy, do not take the cause of the crisis into account.
Head of PIMCO, Richard Klarid, said, “In Washington they believe that this is a liquidity crisis, and keep pouring new money into the market. But this is not a liquidity crisis. This is a crisis of inadequacy, and it is much harder to solve.”
My Comment: People are gradually starting to understand that the cause of our problems isn’t the economy, but the trust between people. And as the crisis keeps growing, people will open their eyes and will start treating one another by the laws of “a small village.” At first this will happen artificially, but later it will become natural.