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Personal point of view on the topic of recent economic crisis

It is almost generally accepted that the recent economic crisis having started in
2008
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When I say “generally accepted”, I am referring to the answers you would
get from probably the most people if you would have been making a survey in the
street
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Admittedly, after having some deeper insight in the genesis of development of
certain trends in global economic relations, it seems to me that certain course of
events or at least parts of it, was maybe inevitable
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If American excessive investing during the
1990s’ led to its internal imbalance comparing to domestic savings, while Chinese
exports still keeps overtaking the imports by miles, couldn’t it be viewed as natural
order and a normal economic cycle?
Putting things in historical context as presented in the text by Carmen Reinhart
„Eight hundred years of financial follies“, it is clearly explained that certain trends in
international economic behaviour repeat
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There is a lot of conflict of interests existing in terms that for example, China doesn’t
stop increasing its exports and building up currency reserve accounts, while U
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In case of U
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Of course, one
of the key questions is how much of that capital ends up in deficit accounts and how
much is transferred into another outflow
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That would probably give an
impact to further lowering the interest rate, risking increase in real estate investing,
but on the other hand, stimulating business investments
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It is high unlikely that
the process is to be easily controlled for the higher good
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The imbalances within the eurozone have recently hit the peak, leaving Germany
and a couple of northern Europe countries as creditors for the rest
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The
process of integration requires adjusting the inner configuration of the countries’
systems to the unified pattern
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Every country within the European Union still has its own
inner policies and institutional mechanisms which are concerned with the regulation
and risk handling
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Certain number of factors of the Eurozone crisis itself
may be in the facts mentioned above, meaning that the expectations of creditors did
not meet the performance of debtors, or at least the reports of the performance of
certain parts was not presented in required fashion, according to the unified frame
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The rhetorical question would be – is it even harder for Eurozone to handle its
imbalances, then it is for vast homogenic markets such as U
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If we look upon the global economic relations between the centers of economic
power, combined with political factors and their backgrounds, it becomes clearer how
hard it is to regulate the shocks on the global level
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My belief is that the experience of the past courses of events throughout global
crisis through the history shows us where the knots and conundrums were or are
now, but the reasons why turndowns constantly repeat are not just economical
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On that basis, it becomes hard to
intervene when the titanic global shifts are about to happen
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