Friday, January 30, 2009

u.s. blamed for global financial crisis

Times Online | The premiers of China and Russia accused America of sparking the economic crisis as the Davos political and business summit made a gloomy start.

Wen Jiabao and Vladimir Putin both blamed "capitalist excesses" for the global downturn, as one followed the other to the podium at the opening of the World Economic Forum last night.

The Chinese premier began with a speech asserting that the worst recession since the Great Depression had been caused by blind pursuit of profit.

In a thinly veiled attack on America, Mr Wen blamed “inappropriate macroeconomic policies of some economies” and “prolonged low savings and high consumption”.

He blasted the “excessive expansion of financial institutions in blind pursuit of profit and the lack of self-discipline among financial institutions and ratings agencies”, while the “failure” of regulators had allowed the spread of toxic derivatives.

The Chinese leader called for faster reform of international financial institutions and for a “new world order” for the economy.