Bankers At Davos Meeting Paint A Gloomy Consensus Going Forward
Posted By thestatedtruth.com on January 28, 2010
Gloomy Scenarios As Bankers Duck For Cover
Jan 27 2010, 3:49 pm by Alan Friedman
DAVOS, Switzerland – The U.S. and European economic recoveries could run out of steam later this year, and they could be faced with a prolonged period of low growth, high unemployment, a huge debt overhang on both governments and households, dangerous budget deficits, and a continuing loss of competitiveness.
That was the gloomy consensus taking shape among members of the world’s business, financial and political elites attending the 40th anniversary meeting of the World Economic Forum here.
By contrast, China, India and the rest of Asia are likely to be the only real engines of continuing economic growth this year, according to most of the economists, corporate types, sovereign wealth fund managers and government officials I talked to on the opening day of proceedings in this freezing cold Swiss ski resort.
The other theme that emerged was a barrage of banker bashing, debate, and criticism of Wall Street that would even make President Obama blush.
Nicolas Sarkozy of France, who formally opened the Davos meeting on Wednesday, won hands-down the title of Bank Basher In Chief with a rambling, ranting and only occasionally coherent speech about why a fundamental rethink of capitalism was needed.
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