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German Leaders Blame U.S. for Financial Crisis

September 25, 2008 7:58 AM

By Christel Kucharz, ABC News Germany

The global financial crisis has been dominating the newscasts and headlines in Germany all week with German politicians reassuring the public that damage to the European system was likely limited.

Nm_german_080925_main Today, echoing what Chancellor Angela Merkel has said earlier this week, German Finance Minister Peer Steinbrück used stark language to blame the United States for the financial crisis.

“The United States, and let me emphasize, the United States is solely to be blamed for the financial crisis. They are the cause for the crisis and it is not Europe and it is not the Federal Republic of Germany.”

Speaking at the parliament in Berlin today, Steinbrück said it was “the Anglo-Saxon drive for double-digit profits and massive bonuses for bankers and company executives that were responsible for the financial crisis.”

"Investment bankers and politicians in New York, Washington and London were not willing to give these up," he said.

“The U.S. is going to lose its superpower status in the world’s financial system. The current financial crisis will leave ‘deep marks’ and Wall Street will never be the same,” according to Steinbrück.

The finance minister also called for closer cooperation and tighter rules. “The U.S. must now work with its international partners and agree to stronger international rules to solve the crisis.”

Steinbrück proposed eight measures to address the crisis, including a ban on speculative short-selling and an increase in bank capital requirements to offset credit risks.

The finance minister also predicted, "The world will never be as it was before the crisis; the financial system will become more multipolar. Wall Street will never be what it was."

Earlier this week, Merkel indirectly attacked President Bush by suggesting that America’s obstinacy had dragged Europe into the money crisis.

According to Merkel, the Bush administration’s mishandling of Wall Street and the U.S. refusal to adopt stricter rules have led to the current crisis.

“We dutifully adopted a nice European Union law into our national law, and we had to deal with numerous complaints from small and medium-sized companies for doing that. When the day came, the Americans said, ‘We won’t,’” Merkel said in a speech Monday.

Merkel complained that taxpayers in countries far beyond the United State would be forced to foot the bill.

“The current crisis shows us you can do some things on the national level, but the overwhelming majority must be agreed to on the international level. We must push for clearer regulations so that a crisis like the current one cannot be repeated.”

Photo Credit: Sean Gallup / Getty Images

September 25, 2008 in Christel Kucharz | Permalink | User Comments (31)

User Comments

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Oh - thanks for rubbing it in Merkel. Maybe you'll remember what we did for you after World War II and maybe help us out or is that asking too much?

Posted by: Bob | Sep 25, 2008 8:10:34 AM

We deserve every tongue lashing we're getting. Osama Bin-Laden predicted he would destroy our economy and that's exactly what has happened. The ultimate terrorist attack.Bush may have stopped an attack like 911, but going to war has destroyed our economy.And with it more lives than 911.

Posted by: Miki | Sep 25, 2008 8:39:26 AM

BS! Don't underestimate the American taxpayer to affect change. We'll clean house in November.

Posted by: JOE | Sep 25, 2008 9:41:41 AM

NO BAILOUT I AM A REPUBLICAN AGAINST THE BAILOUT....NO HELL NO...

Posted by: Sara Palin | Sep 25, 2008 11:16:36 AM

The German's are right.

Posted by: Ted | Sep 25, 2008 1:13:20 PM

Maybe we should close our military bases in Germany and put thousands of Germans out of jobs and hurt their economy just a little bit. A lot of these little villages depend on the US military community to rent apartments, buy goods, etc. to keep their heads above water. BTW...I lived in Germany for 3 years and I know how the system works. The Germans that work in housing send out the pay charts each year and that is how the German landlords figure how much to charge even if the apartment isn't worth that much.

Posted by: Scott | Sep 25, 2008 2:36:36 PM

Oh, give me a break "Europe". I'd like to see you accomplish as much as we have. Yeah, we got problems, our financial situation is a mess right now, but that's life. We'll suck-it-up and move forward. We've been down before and we came back stronger - didn't we? Chill Out!

Posted by: Judy U. | Sep 25, 2008 2:52:10 PM

In my opinion I believe that things will never be the same. The Golden age that we have experienced in every aspect of life has come to an end. The wealth that American once possessed has spread to every corner of this globe giving other countries the stepping stone that they need to be the next World Powers. I believe that there is more to the story that brought us to this point now.
If Congress and the Bush administration would have done more to protect American jobs from outsourcing etc.... I also think that more could have been done to help people who were about to go into forclosure... instead of forclosing on a home and risk loosing more money in the end, they could have renegotiated the loan and avoid the huge catastrophy that we are now experiencing... But greed knows no boundries....

Posted by: lolo2202 | Sep 25, 2008 9:47:37 PM

In my opinion I believe that things will never be the same. The Golden age that we have experienced in every aspect of life has come to an end. The wealth that American once possessed has spread to every corner of this globe giving other countries the stepping stone that they need to be the next World Powers. I believe that there is more to the story that brought us to this point now.
If Congress and the Bush administration would have done more to protect American jobs from outsourcing etc.... I also think that more could have been done to help people who were about to go into forclosure... instead of forclosing on a home and risk loosing more money in the end, they could have renegotiated the loan and avoid the huge catastrophy that we are now experiencing... But greed knows no boundries....

Posted by: lolo2202 | Sep 25, 2008 9:47:39 PM

The congress and senate - both run by the democrats dont seem to agree with the dire situation that has been portrayed by the stock market, financial leaders (eg benanke) and the president.
I guess putting your head in the sand like an ostrich must have its advantages - we'll need to ask the senate and house groups once they bring their collective head back out of the sand.

Posted by: appalled | Sep 26, 2008 7:02:28 AM

Does the year 1929 ring a bell? Who will man the soup kitchens, bread lines, or food pantries this time?
America is in its own mess due to greed and the desire to make the almighty dollar bill.
Germany and most of the world could care less if we collapse and fail. Their life will go on as before, with one less global competitor.

Posted by: Edward | Sep 26, 2008 8:29:09 AM

“We dutifully adopted a nice European Union law into our national law, and we had to deal with numerous complaints from small and medium-sized companies for doing that. When the day came, the Americans said, ‘We won’t,’” Merkel said in a speech Monday.

Hey Merkel, the US isn't part of the European Union ... and frankly you wouldn't have a union without the support the US gave throughout the last century. You would be under the thousand year Reich, but maybe that is what you would prefer... Germany on top.

Posted by: tiredtoo | Sep 26, 2008 8:33:28 AM

The Germans are right. We tried to build wealth on debt. All empires end, not with a bang, but with a whimper.

Posted by: Michael | Sep 26, 2008 9:35:33 AM

Let George W. form his own republican world power by giving him the State of Texas which he probably rents to the United States anyway as we speak. His gross compounding wealth acquired from his reign as prez. is what I would define as "FRAUDULENT ACTIVITY" or "Conflict of INTEREST" at the collaborating expense of all american citizens. We're all circus participants in a miniature dirt war!

Shave the bush!

Posted by: American Citizen | Sep 26, 2008 11:18:30 AM

Sounds like a good time to do it the ol' American way and get an agent, write a book or screenplay and try to make some money out of this mess.

Posted by: edward | Sep 26, 2008 11:28:10 AM

I totally agree with what Germany's
Chancellor, Angela Merkel, has to say about the US financial mess. This has been caused by corporate greed and dishonorable politicians.

Posted by: Kathy | Sep 26, 2008 1:04:22 PM

Get it right Merkel.U.S. Democrats are the guilty party,not the U.S. whole.Arrest Dodd,Franks and any other democrat involved,including Obama.When We The People want your euro-trash comments, we will order it.

Posted by: H.F.C.08 | Sep 26, 2008 2:06:07 PM

I never thought globalization was a very good idea anyway. But, GREED is the reason for the fix we're in. And, to some degree,why a bailout is a really bad idea. They'll be like pirahna,in a feeding frenzy,biting each other to death,to get their hands into all that taxpayer money. I would love to know how they are going to GUARANTEE ACCOUNTABILITY that this money is not absconded with like money allocated for Katrina, the Iraq War, etc...

Posted by: Dee | Sep 26, 2008 2:25:03 PM

Germany is right. And we shouldn't take it personally. Bush and the republicans have destroyed the economy among other things as well. Things must change in order for the U.S. to continue being a world power. Stop critizing Germany. Maybe they have done wrong in the past, but that doesn't change the fact that Bush and the republicans have mismanaged the U.S. economy. If the shoe fits wear it.

Posted by: carl | Sep 26, 2008 7:45:10 PM

Bob, your comment reflects your outdated thinking. It wouldn't surpise me if you get your facts from FauxNews. WWII is history.

Merkel is right, deregulation and extreme greed got us in this economic mess. Had mortgage lenders (use good business sense and) kept the original rates instead of raising the ARM, they would still be making a profit and not be broke now. Fact is that they have driven average people out of their houses, leaving tens of millions of houses foreclosed. They didn't use good judgement, they were too consumed by greed and profits.

Posted by: Mortimer | Sep 28, 2008 9:37:35 AM

Yeah, Osama Bin ladin Said he will destroy are econamy and we may have Osama Obama doing the job. The sleeper cell awakes

Posted by: Paul | Sep 29, 2008 8:55:10 AM

Yes, the US is to blame - it is obvious - and when the US sneezes everybody gets a cold. The US has already borrowed 8 billion from China - the US is in decay. China and Russia will become the next world leaders. It will take the US at least 5 to 8 years of the right leadership to get back on track. There is no war to win in Iraq because it was illegal to begin with and the US invaded a nation that did not declare war and was not a threat to the security of the US.

Posted by: Diana | Sep 29, 2008 10:06:15 AM

i agree ...bush is to blame ........excuses ...excuses!!!

Posted by: moto | Oct 2, 2008 9:18:39 PM

....U.S. solely responsbile for .....mess???
I dont' think so. Didn't most countries try to make profits from these financial instruments? If not the problem would be only U.S. and not globally. Were not foreign bankers just as greedy as those in New York, London and Washington?
I am just as furiated with those greed merchants as the next person but the U.S is not SOLELY responsible. There is enough blame to go around.

Posted by: John Smyth | Oct 4, 2008 7:15:18 PM

The finger pointing has started. There is no country that can say it's clean in this. All were greedy including Germany. With a bankrupt Berlin & Bavaria, she was willing to deal as long as possible. I can't remember anyone publically saying the sky will cave in tomorrow. Merkel should just shut up, she's as greedy as the rest. I was a german at one time, then an American (citiezen) but now I'm neither any more. I saw this comming 10 years ago, and prepared myself for it. Greed and overspending by everyday people caused this mess. Governments only encouraged it, Corporations abused the circumstance and rubbed our noses in it. Ultimately it is us, the people who have to be held accountable for it, we did it to ourselves.

Posted by: Go GO Gonzales | Oct 6, 2008 7:00:36 AM

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