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International Reaction to U.S. Financial Crisis
September 25, 2008 2:08 PM
By Jim Sciutto, ABC News Senior Foreign Correspondent
As lawmakers in Washington work on an agreement on a bailout package, the international reaction to the U.S. market woes has gone from uneasy to angry to almost apoplectic.
Today, the German finance minister (a combination that you’d think could produce only cool, calculated rhetoric) was sharp and bitter: “The United States, and let me emphasise, the United States is solely to be blamed for the financial crisis … this serious banking crisis will leave deep marks and Wall Street will never be the same.” This follows the public beating the U.S. has taken at the U.N. General Assembly over the financial crisis. Granted, a good deal of this is schadenfreude.
However, it’s also understandable coming from countries that the United States has preached market orthodoxy to for years. More important, though, is the very real effect this has had on confidence in the United States as the world’s leading financial center. There was already a migration under way from Wall Street to London, Europe and Asia due to the relative growth of those markets. Adding a crisis of confidence will accelerate that migration. What does it mean for average Americans?
Financial stocks had been leading the U.S. market for several years. Their profitability, now handicapped, will mean less money in everyone’s pension and 401( ks) . It means New York will lose lots of business to London, Hong Kong, Singapore, etc. And, more broadly, it could mean higher lending costs for all sorts of American businesses, as the capital markets eat into the discount the United States has long enjoyed. That it comes as other kinds of U.S. military and diplomatic influence is being challenged adds to the possible impact.
That may sound like even more schadenfreude, but fact is, it’s the way the crisis is seen over here. And it’s something Americans do have an interest in.
Read more about the German Finance Minister's comments here
Photo Credit: Associated Press
September 25, 2008 in Jim Sciutto | Permalink | User Comments (12)
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The international community didn't seem to mind when it was making money off of our housing market.
Posted by: Ladyvoter | Sep 25, 2008 2:17:59 PM
I hope this example of political pandering by McCain gets the scorn it deserves. What kind of arrogant fool thinks he and only he can save America? I believe his great "patriotism" is more motivated by falling poll numbers than any REAL concern he has for the economy. This is political grandstanding, plain and simple. McCain has become nothing but a lying self aggrandizing SOB.
Posted by: JR | Sep 25, 2008 2:20:33 PM
don't worry folks, Palin will go overseas and keep them aprised of the sistuation...
Posted by: matt | Sep 25, 2008 2:26:17 PM
Actually it is all Playing into the DNC/Chicago Machine play book.
No wonder Obama is dragging his feet.
Posted by: seah | Sep 25, 2008 2:41:28 PM
You are a bunch of people talking like you know squat, but you are really a bunch of people who don't know squat.
Posted by: Kitty | Sep 25, 2008 2:44:29 PM
Republican staements:
The Economy is "SOUND". It's all in your head, folks. Oh, Americans are just a bunch of whiners! and the best one of all: I can see Russia from my backyard!
Posted by: Sarcasm | Sep 25, 2008 3:02:27 PM
Deregulation, short selling and selling packaged mortgages over and over again - these are the culprits. Like the comment above, these international investors were not complaining when they were profiting from Wall Streets actions.
Posted by: Gerald | Sep 25, 2008 5:05:37 PM
It's amaizing ! How can republicans, say that the economy is SOUND. This problem happened under republican watch. I don't know? Do republicans have lower IQ's?
Posted by: Louis | Sep 25, 2008 5:16:28 PM
Thanks a lot Europe for pressing our noses into it. This financial crisis will cripple the US and the beat cop for the world will no longer be able to stop wars and terrorism. The world is gonna go down without us. Who will pick up the baton? Russia? China? Japan? Europe? I don't think so.
Posted by: Bob | Sep 26, 2008 8:15:02 AM
This whole fiasco would never have happened had there been regulation on Wall Street and the markets in general. Greed and utter stupidity are the two components most responsible for the situation at hand. Were this not so far reaching, I would let these banks fail and sweep up the mess when finished; but we can't do that without destroying the world's economy.
Posted by: Phil | Sep 26, 2008 8:47:20 AM
This "crisis" has been engineered--scare-theater for the proles, but it seems some of the actors don't want to play their roles anymore.
Listen to this man's words. RIP Aaron Russo.
Posted by: watcher | Sep 27, 2008 1:01:36 PM
Speaking of "what makes the news and what doesn't"...
I can't seem to find anything on ABC News about the car bomb today in Damascus outside the "Sidi Kadad Intelligence Headquarters, which houses a special unit responsible for Palestinian security and intelligence matters" that killed at least 17 people and wounded "about a dozen others, including women and children, according to government official".
http://www.cnn.com/2008/WORLD/meast/09/27/syria.blast/index.html
It wouldn't be because this bloody attack wasn't the work of "islamic extremists", would it?
Posted by: sivan | Sep 27, 2008 7:12:16 PM
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