Are there things government can do? Yes, but I don't know if this government wading into the economy (bailing out car companies, soaking up bad bank debt, huge deficitis, etc.) as the 'saviour' of the country is going to work. This is beginning to sound ominously like the temporary 1970s budget deficits of the Trudeau minority governments that lead to 27 consecutive budget deficits leading to a accumulated debt of $583 billion dollars.
Who would have thought that the president of the former communist Soviet Union would have wisdom - based on their negative experiences - for us at this time?
Vladimir Putin. the Russian Prime Minister, launched a swingeing attack on Western
financial rescue packages yesterday, calling for a new world order to reverse the financial crisis.
On his first visit to the World Economic Forum in Davos, Mr Putin called the crisis a “perfect storm” that had arisen from a world dominated by the US. He said that only a rebalancing of global power could cure the problem and that financial stimulus packages of the kind agreed by Washington and London could lead them down a path well-worn by Moscow while doing little to aid recovery.
“Interference of the State, the belief in the omnipotence of the State: that is a reaction to market failures,” Mr Putin said in his keynote address at the opening of the four-day meeting. “There is a temptation to expand direct interference of state in economy. In the Soviet Union that became an absolute. We paid a very dear price for that.”
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