September 25th, 2011
10:49 AM ET

Fareed's Take: Governments doing almost nothing to fix debt crisis

By Fareed Zakaria, CNN

This was U.N. week and there was some drama over the issue of the Palestinian bid for statehood. But the real action is taking place now - as the world's finance ministers and leaders meet to talk about money.

I think it's fair to say that we are confronting the worst economic moment since the days after the collapse of Lehman Brothers in 2008. Growth has slowed in Europe and the United States - and is slower even in the bubbling emerging markets. Some European countries now have problems with their debt burdens that appear unmanageable and that problem is spreading to major European countries like Italy.

Europe's banks have too little capital and too much bad debt on their books; they are poised for a Lehman-like event. And here's the worst part, in light of these problems, key governments are doing - almost nothing.

The real culprits here are the leaders of Europe. They have kicked the can down the road for two years. They now have got to face the fact that the euro was badly created - mixing together economies of very different characters - and fix it.

That could mean a smaller, stronger eurozone (which is to say, letting a country like Greece exit). Or figuring out a way to let Greece default and shore up Italy and Spain. I've argued that the best solution would be to have the IMF get money from countries like China and use it to structure a long-term reform program for Italy and Spain. There are other ideas - like euro bonds, which would allow countries like Greece to borrow at German-subsidized rates. But Europe's leaders need to do something to deal with these problems.

In the United States, we talk a great deal about the jobs issue but who's doing much about it? President Obama's jobs plan, which is pretty good, is going nowhere in Congress. (And he hasn't helped matters by presenting a gimmicky and inadequate plan to fund that program). The market keeps telling us by the ever-falling interest rate that it fears another recession, not inflation.

Everywhere leaders all seem to assume that if they just keep things steady, something will miraculously happen to solve the problems and jumpstart growth. It won't.  The problems are actually getting worse and by sticking their heads in the sand, leaders are only deepening the inevitable crisis.

For more of my thoughts throughout the week, I invite you to follow me on Facebook and Twitter and to visit the Global Public Square every day. Also, for more of my takes, click here.

Post by:
Topics: Economy • Europe • Fareed's Take • United States

soundoff (138 Responses)
  1. David

    Fareed, a sound interpretation of events. However, I find that you are too optimistic about the role of politicians to solve economic problems – while politicians can easily cause economic problems, as we have seen through their excessive spending and borrowing, and their interference in markets, perhaps the best thing the politicos could do would be to step out of the way, stop wasting our children's inheritence, and let the markets resolve matters.

    September 25, 2011 at 12:38 pm | Reply
    • Nodack

      Since nothing is getting done anyway you should be happy then.

      September 25, 2011 at 5:22 pm | Reply
      • samyulee

        they are not leaders, they are just politicians, they deal wit the fame and money only , and they evenn dont care for nothing.phlebotomy courses

        November 15, 2011 at 2:32 am |
    • marik7

      Would you favor a return to government policies before Theodore Roosevelt, or would before Grover Cleveland be more to your taste?

      September 25, 2011 at 9:01 pm | Reply
    • Luigi

      David, before discussion what we should, in your words, what caused the Wall Street crash? And what caused the cause?

      What do you think the government should have done differently?

      20/20 hindsight should be easy. Can you do it? (Is there any depth behind your opinion?)

      September 26, 2011 at 12:39 am | Reply
      • tsoho

        The cause of the current crisis goes back decades probably even before the boom of the 90s. There are two realities that got us here.
        1) Markets fluctuate. Periods of unrealistic growth are followed by corrections in which the economy slows down.
        2) Politiciians are extremely short sighted, and view everything in terms of the next election. This gives them a perspective of two years at the very most.
        So, putting those two realities together, you get the following sequence of events:
        Bubbles form in the market resulting in higher than normal growth.
        The bubble starts to break
        Politicians see the bubble breaking, not as a correction, but as a slowdown from "normal" growth and they reach into their bag of tricks to keep the unsustainable growth going. They cut interest rates or lower taxes or give tax credits in order to make sure that the consumers have more money to spend so that the economy won't contract.
        Meanwhile, the gap between where the market is and where it should be keeps growing, setting us up for an even larger correction.
        Eventually the bag of tricks runs dry. Interest rates get cut to practically nothing, Income taxes get cut to the point where most people don't pay anything. The only thing left is for the government to start giving out borrowed money.
        When there is nothing left that government can do, the market finally corrects itself. Unfortunately, by that time, the correction needed is so large that it sets us up for a decade long recession.

        September 26, 2011 at 9:48 am |
    • Vera Waitress

      Get out of the way of the $600 billion dollar a year war-for-profit machine? That's so ignorant, it hurts.

      September 26, 2011 at 12:45 am | Reply
    • j. von hettlingen

      Nothing is done on political level because leaders worry more about their popularity among voters than their country's future.

      September 26, 2011 at 5:24 am | Reply
    • j. von hettlingen

      Angela Merkel feels the resentments of her fellow citizens in Germany towards bailing others out. Papandreou goes again his people in order to get the badly needed money to keep Greece afloat. Berlusconi cares only about Italy's image abroad. Obama defends his budget as he needs votes for his re-election.

      September 26, 2011 at 5:25 am | Reply
    • steve

      Unfortunately the markets are what got us in to this whole mess. A lack of regulation, whch was initiated by Clinton caused the housing crisis. Without some one watching the till, greed takes over in the private sector. Bush further exacerbated the whole mess by being asleep at the wheel.

      September 26, 2011 at 8:36 am | Reply
    • HerrDr

      As a young person with a family, I have a lot more to lose from all of this than you, since it sounds like you are retired and just waiting to give your kids your money. Perhaps you need to stop worrying solely about the petty inheritance (cash) you will hand down to your family and worry more about the inheritance (infrastructure) you are sending to everyone's kids. I for one would rather not receive any inheritance from my parents, but rather be able to get a job and develop my own life and career!

      September 26, 2011 at 8:52 am | Reply
    • Adam

      David,
      While I agree that many politicians are not adequately trained to be in their positions, I disagree that the best solution is to "let the markets resolve matters." Please, cite one case where the markets fixed a broken system. Europe's economic system is suffering because the Euro was poorly created, as Fareed points out. The government has the responsibility to make sound decisions to correct this matter, not to ignore it and hope that the market eventually works things out. I'm sorry, the market cannot fix a system. It doesn't work like that.

      September 26, 2011 at 9:34 am | Reply
    • sgurdog

      That's ridiculous. The markets are not self healing and what it would mean is that retirement plans will become worthless if you allow it to unwind in such a wild fashion. Markets are looking for reassurance from policy makers that they will do what they're elected to do and have the power to do.

      September 26, 2011 at 9:38 am | Reply
  2. Jeff Carter

    Your interveiw with Erdogan; no follow up on his claim of "hundreds of thousands of Palestinians killed? No follow up on his claim that thousands of rockets shot into Israel is really no big deal? Another puff interview. Of course an Israeli never gets the puff only confrontation...What a joke

    September 25, 2011 at 1:18 pm | Reply
    • Carolin Knox Linck

      You saved me the effort of typing my complaints about the Erdogan interview...and I use the term interview loosely. CNN can save some money and just have a robot ask questions and let the person being asked blab at will, with no follow up. The whole thing was embarrassing. Then they wonder why people have no respect for "journalists" anymore.

      September 25, 2011 at 4:22 pm | Reply
    • tony

      Great Interview Fareed you ask Q That billions of people want to know. good on you. Erdogan is person who speak the truth hope Obama and Israelie leaders do the same.

      September 25, 2011 at 4:29 pm | Reply
  3. Ben Herlinger

    As someone who watch you every Sunday, I watched your interview with the Turkish PM this morning, what a joke! You never challenged him re the Armenian Holocaust when he compared the Jewish Holocaust to the Palestinians, or the Turkish/Curds aggression when he wants to be the human leader. You have allowed without a question mark the non answers to the question regarding Turkey becoming more Islamic and less secular or the dancing around Syria and Assad. You gave him a platform without even once challenging the FACTS. I expected more from you.

    September 25, 2011 at 1:48 pm | Reply
  4. Paula

    I think that some honesty must begin to creep in those people like you who comment on the world and national economy.
    The democratic governments around the world are not in control of their respective countries, world wide corporations are.
    You often hear that corporations are sitting on their money, not hiring, reinvesting in this country because of uncertainty Give me a break, corporations are investing in Russia is that country stable, in India, I've been keeping track of the political and ecomonic problems that exist there. Just go around the world and track corporate investment to determine the real relationship of government to corporations and you will come to only one concludion, corporations control the world, via S & P and all the others. Today business has become a deity for many. That is they believe that whatever is good for business is good for the world. I don't think so. If world governments are ever going to take the steps to improve the living conditions of their people both today and in the future ( I mean the starving child of today influences the world of the child that are born tomorrow)., they are going to have to get control of these corporations not starve their populations. Hungry people start "riots" they will fight back. That is what happened in England, despite the attempt by the media to make those demonstrations something else. Read the following and then have your researchers find out how many people Cisco has hired here in the United States.

    . Cisco Systems Inc. says it will invest $1 billion in Russia over the next decade, plus $100 million in venture capital. Cisco also will establish a "dedicated physical presence" in a planned technology hub outside Moscow, touted as "Russia's Silicon Valley."
    "Simply put, we're all in," said Cisco CEO John Chambers at the company's San Jose headquarters Wednesday, with the Russian president beaming by his side. "We will be great partners. We will try never to let you down."
    Cisco does not share the doubts expressed in many quarters about Russia's high-tech potential and Medvedev's drive to modernize the former empire.

    September 25, 2011 at 1:54 pm | Reply
    • CheekyIndian

      Paula to give an answer to a really well laid out problem there .... corporations like Cisco are not greedy, but they are not patriotic either....... what they like is profitability and also fear going under .... Countries like Russia and India are investing serious money into R&D more than ever before .... with cost of living being what it is in these countries they will be able to produce more results at lesser cost .... that would leave companies like Cisco as sitting ducks if they are not part of this new movement ..... America will have to reduce its cost of living .... period ....like everyone telling Obama to spend less, people should adopt the same measures too ..... the American dream of the best of everywhere for every American household is no longer tangible ... afterall you were the ones that created replicas of your economy around the world ..... no use complaining about it now ....

      September 25, 2011 at 7:51 pm | Reply
      • Steve

        CheekyIndian is absolutely dead on. But I will extend it further. Companies fear uncertainty. The reality is the political uncertainty in Russia is more manageable then the economic uncertainty in the United States. Buisness be it big or small does not trust the Obama administration. The small buisness owner sheds blood, sweat, and tears in the hope they will strike it rich. Would the 49'ers of old risk their lives crossing North America if they knew most of their new found riches would be confiscated by the government? If your going to be buisness unfriendly, the inevitable results is that buisness small and big will be reticent in investing. Perhaps the reality of the increased taxes and increased regulation is modest. Yet the rhetoric leaves it open to interpretation what Obama's real intentions are.

        September 25, 2011 at 10:04 pm |
      • DeanTheMean

        @Steve – Man, do you know the hell a small company has to go through in a developing country? And yet they thrive and do whatever is needed to make a profit. Stop listening to the spin machine. Just see for yourself what's happening: America is getting poorer every day (for the last 30 years) and therefore business don't invest anymore here. Thanks, globalization!

        September 26, 2011 at 9:10 am |
      • sgurdog

        The American dream is about providing education and equal access to generate opportunities for everyone, not the best of everything for everyone. Our problems begin and end with education, which is in shambles because many single parents simply cannot work 2 or 3 jobs and spend quality time helping their kids. Our economy is now based on investor first, employee last and that's where all of the money, news and energy is focused...that's why we'll continue to ride bubble after bubble until people get fed up and take over the factories themselves. The world economy is now this way so we're all in the same boat being capsized by traders, hackers and suits being idolized and paid out handsomely based on short term profits.

        September 26, 2011 at 11:21 am |
  5. Paula

    Sorry it should read "child that is born tomorrow"

    September 25, 2011 at 1:57 pm | Reply
  6. Stuart

    Fareed – I have watched and read you for quite some time and enjoyed your insights. Today, I turned off your show midway through your interview with the Turkish PM. Your presence at this "interview" was unnecessary, as you said and added nothing; the PM's presence unnecessary because everyone already knows his views on Israel. We watch your show, not to see what important people you have wrangled for this week's show and to hear them pontificate, but to hear you challenge or at least question their views. If your purpose today was to imply, through your silence, that you agreed with his views, I am not only disappointed in you as a journalist, I am disgusted by your ignorance.

    September 25, 2011 at 3:01 pm | Reply
  7. tony

    Great Interview First time this guy make me happy to see what honest guy he is. Erdogan mate your the man I am not a Turkish but we need people like you that talk from heart.God protect you from terrorist IDF.

    September 25, 2011 at 4:22 pm | Reply
  8. Russ in PA

    More economic nonsense from CNN: the banks in Europe have to take haircuts, not the taxpayers. Or haven't they learned anything from the bail outs in the US over the past few years? Losers have to take the hair cuts, not taxpayers. The sooner, the better.

    September 25, 2011 at 4:24 pm | Reply
    • smitvict

      Banks should STOP lending to countries so countries can continue to deficit spend. That would STOP the problem.

      Secondly, we should STOP buying US savings bonds and any other government bond. The Chinese should do the same. That would STOP our deficit spending.

      Taxpayers should not bail out deficit spending. Neither should we.

      September 25, 2011 at 7:47 pm | Reply
  9. tony

    some people do not like Fareed only because he is Muslim. eat your heart out loosers.

    September 25, 2011 at 4:31 pm | Reply
    • tim

      Why would someone who loosens things have a problem with Muslims?

      September 25, 2011 at 8:02 pm | Reply
    • Joe Nobody

      It has nothing to do with Fareed religion. Fareed is such a softy and that is the fact jack !....Bill O'reilly kicks Fareed ass when it comes to interview and asking hardball questions.

      September 26, 2011 at 8:15 am | Reply
  10. harry

    Once again I have to say that Rebumlickers are determined that Obama be a 1 term president. So much so that they block any attempt by him to help the economy so they can point their fingers and say it's his fault and we'll fix it in 2012. We all know this disaster was passed down by (b.s.) Bush. Now when Obama wants the people that made money off us over this mess to give it back, they have a fit. It's really to bad that Obama has tried to reach out to these nitwits to work together as government was supposed to to fix things. To bad he can't ram the changes down their throats, like they get rammed up the a»» by big business, and we take it up the a~~ from all of them.

    September 25, 2011 at 5:02 pm | Reply
    • Joe Nobody

      Dont take his name in vain. George Junior is not running the country now. So stop using/calling his name in any discussion. Blame Obama for all your problems because he is the main problem aka does not have the spine (and leadership) nor experience to run the country.

      September 26, 2011 at 8:12 am | Reply
  11. russinmaine

    And why would we be surprised at no response from those whose spole mission is to undermine and destroy capitalism in this nation? The irst step in that overall goal is to destroy everyones wealth because citizens without means are so much more easy to control and keep in line!

    September 25, 2011 at 5:04 pm | Reply
  12. Rick McDaniel

    To be honest Fareed, neither political party has the guts to take the ONE action that would return jobs to the US. Neither one.

    I see absolutely no job growth to speak of, for years into the future.

    September 25, 2011 at 5:11 pm | Reply
    • DeanTheMean

      You're absolutely right. This would eat right into their campaign money – no more aft contributions from all multi-nationals.

      September 26, 2011 at 9:22 am | Reply
  13. Pepperwolf

    Hey CNN, where is your coverage of the NYPD assaulting the protesters in NYC. Do we live in Iran now?

    September 25, 2011 at 5:12 pm | Reply
    • SixDegrees

      They tend to report actual facts, not hallucinations.

      September 25, 2011 at 5:26 pm | Reply
      • Joe Nobody

        It is the fact and for you quit smoking that crap. will yea....

        September 26, 2011 at 8:16 am |
    • Robin

      They buried it, but the story is there. Click on the US tab on top + its the 3rd from the bottom story listed. They like to hide the truth, but its there if you dig for it.
      You can watch it live here: http://www.livestream.com/globalrevolution

      September 25, 2011 at 10:40 pm | Reply
    • Oh Noes!

      Herp Derp...who cares.

      September 26, 2011 at 5:56 am | Reply
  14. george in exas

    wonder how people feel that this h1b guy is telling us what to do about our economy. shouldn't they be fixing their economy if they are so smart.

    September 25, 2011 at 5:14 pm | Reply
    • Inga

      Be reminded that Ivy Leaguers, from every corner of the globe, have the world in the MESS that it is now in economically. I think it is time to give those who graduated from the universities of HARD KNOCKS A CHANCE AT LEADERSHIP. They sure as hay won't do any worst than our brightest minds have done.

      September 25, 2011 at 10:40 pm | Reply
      • Joe Nobody

        Yeah...I agree with you. Therefore, vote for Perry since he is from the University of hardknocks....

        September 26, 2011 at 8:18 am |
    • No Nonsense

      This H1B guy has more viewership and makes more sense than the US Citizen Limbaugh....looks like we need to increase the number of work visas if it means bringing in intelligent people like him here...American education is not helping matters

      September 25, 2011 at 11:46 pm | Reply
    • No Nonsense

      oh...and their economy is moving much faster than ours.....as if you didnt know...sad but true!!!

      September 25, 2011 at 11:48 pm | Reply
  15. SixDegrees

    "Or figuring out a way to let Greece default " Uh – Greece ALREADY defaulted. Months ago, they got together with the rest of the EU and said they couldn't pay their debts. At the time, they agreed to pay 80 cents on the dollar instead. If that's not a default – failure to make agreed-upon payments in full and on time – I don't know what is.

    The latest problem is that now they're claiming they can't even pay the 80 cents.

    September 25, 2011 at 5:25 pm | Reply
  16. Monali Khandagle

    Why is a stand against Israel by the Turks considered a stand for Islam. Turkey is a sovereign nation, it has a right to stand up to agression by any country, Israel included.

    September 25, 2011 at 5:27 pm | Reply
    • Sathyavrath

      Just as Israel has a sovereign right to block anybody entering its borders without a valid visa, or is perceived to support anyone who is a threat to its existence. Otherwise all vulnerable countries would be open to attack ; just like the terrorists who attacked Mumbai, and sailed in from Pakistan.

      September 26, 2011 at 5:50 am | Reply
  17. Inga

    We enjoyed eight years of, unpaid for ABUNDANCE, under the BUSH Administration. And we are now experiencing eight years of FAMINE because of that PAY LATER PLAN. Its all about YIN and YANG. We are now reaping what we sowed. WE PAID FOR NOTHING UNDER THE BUSH ADMINISTRATION. ALL WE DID WAS POCKET THE MONEY AND DID NOT CARE WHO GOT SCREWED, WHICH CAUSED ALL OF US TO BE SCREWED.

    September 25, 2011 at 5:40 pm | Reply
    • Mike, NH

      I guess the fact that obama has actually increased spending by 22% doesn't bother you huh? It's just Bush's spending that's the problem. What a hypocrite.

      September 25, 2011 at 5:50 pm | Reply
      • Ritesh A

        I don't understand how people like you can defend Bush. You wage two different wars and you lower tax rates ... where the hell are you going to pay for this double whammy ... The debt has just caught up now ... it's as straightforward as that.

        September 25, 2011 at 11:57 pm |
    • Brian

      Really? The spending during the Bush years pales in comparison compared to obama. DEMOCRATS spend like drunken sailors. The last Republican budget had a $160 Billion deficit... DEMOCRATS multiplied that deficit by 1000% in just 2 YEARS!

      September 25, 2011 at 6:24 pm | Reply
    • Jason

      Brian, both parties spend like drunken sailors.

      Dick Cheney flat out stated that "Deficits don't matter, Reagan proved that." George Bush increased spending on Medicare AND military, and paired the increased spending with tax cuts.

      Whether or not Obama has been worse depends on whether you decide that he gets credit for the 2.1 trillion dollar deficit package that he signed. Either way, our deficit has grown faster than the economy for 28 of the past 30 years, and that's not sustainable no matter who you want to blame.

      September 25, 2011 at 6:34 pm | Reply
    • tim

      Most Democratic supporters blame Republicans, but Obama had 2 years of Democratic control of both the Legislative and Executive branches. Instead of working on the economy, they passed regulations in the form of Dodd-Frank and the "Affordable" Care Act. They then say that they didn't realize how much of a problem the economy really was. Failure to see is not a fault of the Republicans. If the recession is to be blamed on Bush, then Obama takes full ownership of the jobless recovery.

      September 25, 2011 at 8:10 pm | Reply
    • Joe Nobody

      Blaming George Junior again?....so sad and too bad! why Obama wanted to be President if he could not solve economic problems? or better yet why you all have elected Obama? you all know that he does not have the experience, leadership and more importantly does not have spine to stand up for what he believes.

      September 26, 2011 at 8:23 am | Reply
  18. OldAsDirt

    Debt's only a crisis where you live with what you want rather than what you have. The US has taught most of the world to borrow against their own future, and never figured out how to recover. If the world sinks, the US is the leader of the free debt spiral.

    September 25, 2011 at 5:50 pm | Reply
  19. Jeff Spangler

    We are _so_ fu[n]ked! Assume the position and prepare for a rough ride as the Guiding Hand of world markets comes crashing down on the bankers who have made years of stupendously dumb and risky decisions.

    September 25, 2011 at 5:55 pm | Reply
    • Jason

      Unfortunately, those banks are going to take with them the pension funds and savings of everyone who trusted them to make the right decisions.

      It would be nice to simply watch the banks burn, but the banks are an organism that has burrowed itself deeply into every corner of society.

      September 25, 2011 at 6:21 pm | Reply
  20. pravin

    Now Fareed Z is an economic expert? Wow... Next he will be wading into the field of Medicine to upstage CNN's Gupta..

    September 25, 2011 at 5:58 pm | Reply
    • KA

      He does have a PhD...

      September 25, 2011 at 10:00 pm | Reply
      • Reagan80

        I know. Now, iIf he just had a brain to go with it.

        September 25, 2011 at 10:39 pm |
    • Joe Nobody

      Nah...he is not good at economics nor medicine. But he is good at cooking (or may be I am wrong) ! if CNN will dump him, he will go to Food Network?...

      September 26, 2011 at 8:29 am | Reply
  21. pravin

    Now Fareed Z is an economic expert? Wow... Next he will be wading into the field of Medicine to upstage CNN's Gupta....Obama's jobs plan is anything but.. just another subsidy to his favorite union supporters..

    September 25, 2011 at 6:00 pm | Reply
    • Jason

      Obama's plan would certainly help create jobs, but the question is how many and at what cost? No amount of economic manipulation is going to overcome the inexorable tide of capital fleeing to nations with a lower cost of labor.

      Now is the time to pay down our debt and weather the storm until things equalize.

      September 25, 2011 at 6:18 pm | Reply
  22. jimmy

    Fareed seems to be the only reasonable voice around when it comes to national and international economic situations. Fareed for president!!

    September 25, 2011 at 6:15 pm | Reply
  23. ombdz

    The only thing Obama is doing about the debt crisis is politicizing it, a reflexive reaction with this Administration. Should be interesting to see how they politicize Rosh Hashanah this week. Maybe we should take some lessons from the White House Easter Egg Roll ...

    http://www.ombudizen.com/2011/09/25/permanent-campaign/

    September 25, 2011 at 6:16 pm | Reply
    • Jason

      Obama's politicizing the debt situation? Did I read that correctly?

      September 25, 2011 at 6:19 pm | Reply
      • Reagan80

        Why, yes, you did. Hard to believe that a man who politicized two wars while our troupes were in the field would do such a thing.

        September 25, 2011 at 10:36 pm |
  24. Brian

    Well... let's see here Fareed... The Republicans are currently doing everything they can, and throwing themselves against public opinion and the total demonization from YOUR PARTY in order to lower the debt, but every time they do... YOU and YOUR PARTY block them in the Senate, say they are trying to kill old people, say they don't care about the middle class. Fareed, YOU ARE A JOKE, so is your party

    September 25, 2011 at 6:22 pm | Reply
    • Jason

      No, neither party is doing "everything that it can" unless you mean "everything that it can without doing the things that would be hard."

      Neither party is doing anything to actually lower the cost of medicine in the US. They're all in the pockets of big pharma and the insurance corporations.

      Neither party is willing to combine aggressive tax increases with aggressive cost cutting. Every one who isn't drinking red or blue koolaid understands that there must be fundamental fairness, and that means pain that's spread across society.

      You blame Fareed and the Democrats, and they blame Beck and the Republicans, and you're both right because neither party is being honest and their own partisan supporters don't WANT them to be honest. You want "your" party to win the lying contest, and some one else wants "their" party to win the lying contest.

      September 25, 2011 at 6:30 pm | Reply
    • WK

      Don't tell me your that ignorant, Brian. If you think the GOP is lily white pure on these issues, you are sadly mistaken. Both parties share culpability creating these false public impasses, resuling largely in ineffective and dysrunctional government. The Great Recession, aka 21st century depression, started under Bush and continued under Obama. The USA has been effectively lost politically since the disputed 2000 election. PLease note that analysts today have ruled the 2000s a lost decade economically as well.Bush was in power 8 of these years, so there is plenty of blame to go around on both sides.

      September 25, 2011 at 8:56 pm | Reply
      • Reagan80

        Oops! You seem to have forgotten "Recovery Summer". Obama and Biden fixed Bush's recession. This recession is all Obama's. Unless, of course, you want to go with Obama's position that Bush WOULD HAVE caused this recession too, if he had been given the chance so, it really is Bush's recession after all.

        September 25, 2011 at 10:31 pm |
  25. Rhonda

    We need to vote for Herman Cain. We need 9-9-9!!!

    September 25, 2011 at 6:42 pm | Reply
    • mb2010a

      No, thanks...that would be as bad as wasting your vote on Ron Paul.

      September 26, 2011 at 7:34 am | Reply
  26. Lardeau

    This whole thing has now gone too far and is NOT fixable right now. Compound Interest is going to deliver the Coup De Gras. There is too much squabbling to find any unanimous solution which MUST be radical. A Dictator like Hitler could solve it ... and he did in Germany. He said all debts are hereby cancelled. He issued new money and picked Germany up almost overnight. Engineers can design an almost perfect monetary system RIGHT NOW but there won't be a mandate from America to let them go to work on it. So what happens next ?? A complete collapse eventually. So clean up your personal act and get ready. Start by buying physical gold and taking delivery of it.

    September 25, 2011 at 7:11 pm | Reply
  27. Victoria

    We ignore this situation because it undercuts our assumption that everythng bad that happens in the world is due to some American politician. There is a world catastrophe going on because banks around the world seem to be going bankrupt for no reason that no one can –or will explain. I'm no financial genuis but I suspect that some of these money enhancement schemes they have developed in the last couple of decades–derivatives, default swaps etc–have gotten out of hand and they find themselves unable to payout the promised profits. So they avoid lending to businesses, which in turn leads to cash crunches, layoffs, selloffs etc etc

    September 25, 2011 at 7:27 pm | Reply
  28. Samuel Margolies

    Only way to remedy the global debt problem is to initiate a global solution. A global problem needs a global solution. The segmented austerity programs and purposed revenue increases are the wrong options for now. Now we need a global solution, a rebooting of the world economy.

    There is only one: Global Debt Realignment.

    http://www.debtrealignment.com

    "That's the way it is."

    September 25, 2011 at 7:49 pm | Reply
  29. rana

    Good take on the crisis.Problem is that the developed world has been living on borrowed money for too long..and emerging markets have been giving credits to them for too long..eg China..and creating capacities to fuel the supply for the demand created by the credit ...the emerging markets need to create demand within..and the developped world needs to tighten their belts for sometime and think about ways of paying off the debts..

    September 25, 2011 at 8:51 pm | Reply
1 2 3

Post a comment


 

CNN welcomes a lively and courteous discussion as long as you follow the Rules of Conduct set forth in our Terms of Service. Comments are not pre-screened before they post. You agree that anything you post may be used, along with your name and profile picture, in accordance with our Privacy Policy and the license you have granted pursuant to our Terms of Service.