Tags: german | finance | minister

German Finance Chief: U.S. to Blame for Economic Crisis

Monday, 29 Sep 2008 05:44 PM

Germany’s finance minister, Peer Steinbrück, says the United States clearly bears much of the responsibility for the mammoth, global credit crisis.

“The source and focus of the problems are clearly in the United States,” he told Spiegel magazine.

“There are many causes. After 9/11, a great deal of cheap money was tossed into the market. Apparently some of that money went to people with poor creditworthiness. This led to the growth of the real estate bubble,” Steinbrück said.

“The banks embarked on a race over profit margins. Then speculation spun completely out of control…”

Steinbrück went on to say that the current financial mess is clearly the worst in decades, although he stopped short of comparing it to 1929 and the ensuing Great Depression.

“One thing is clear: After this crisis, the world will no longer be the same. The financial architecture will change globally,” Steinbrück said. “There will be shifts in terms of the importance and status of New York and London as the two main financial centers.”

“State-owned banks and funds, as well as commercial banks from Europe, China, Russia and the Arab world will close the gaps, creating new centers of power in the financial world.”

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Obama to Propose Protecting 1.4 Million Acres of Arctic Refuge

Sunday, 25 Jan 2015 11:21 AM

President Barack Obama will propose protecting 1.4 million acres (556,000 hectares) of Arctic refuge from oil and gas dr . . .

Kerry Ties US Aid Against Boko Haram to Peaceful Nigerian Vote

Sunday, 25 Jan 2015 15:39 PM

U.S. Secretary of State John Kerry urged Nigerian political rivals to ensure upcoming elections aren't marred by violenc . . .

Partial Greek Election Results Put Syriza on Track for Victory

Sunday, 25 Jan 2015 15:26 PM

The anti-bailout Syriza party won a clear victory in austerity-weary Greece's national election on Sunday, according to  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved