Global Financial System

Monday, 11. August 2014

Many causes turbulence which is currently suffering from the global financial system have been sought. I do not think that there is a single, guilty as every one must be responsible for their actions. It is obvious that those who years ago took their borrowing decisions considering that rates would remain indefinitely in 1% acted imprudently. It was very difficult that those such low levels were sustainable. But between June 2004 and June 2006 the FED multiplied by 5 its intervention rate, from 1% to 5%. This was probably the most irresponsible action of all. You can not multiply the types by 5 in 2 years and expect that everyone will be able to adapt that quickly.

5% Is not high, but multiply the types by 5 is an irresponsibility that has brought many of the problems that currently has the financial system. The management of interest rates should generate stability to the economy. These so sudden changes have caused the opposite effect, generating large doses of instability. We hope that from now on the new managers of the EDF will rectify and bring stability to the economy, that is the mission that have entrusted.

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