Congress Center

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John K. Galbraith said that there are two kinds of economic experts: those who do not have nor idea and those who do not know even that. Economist Martin Wolf pointed to the first group: honestly, we do not know what will happen. But it is likely that the next news going to be worst, replied the number two IMF, John Lipsky. The consequences of the crisis are potentially dangerous: the World Trade Organization warned yesterday of the risk of a protectionist escalation, and the Minister of finance Christine Lagarde, French, warned that the economic hurricane will cause social problems.

It is not a prophecy. France has lived this very week a sound strike. Yesterday, hundreds of people demonstrated against the Forum in Geneva. Despite the spectacular security measures, protests reached the heart of Davos. The demonstrators they threw shoes at the Congress Center. The boom of recent years was for Davos man the consequence of the triumph of the market about the State. That has changed at full speed. As a result, Davos has this year touch surreal: the mea culpa of bankers, executives and politicians, who now call for more regulation and applaud the rescue plans – arsonists turned into fire, says economist Jean-Pierre – Lehman, and the role of Russia and China, presented almost as saviours of the capitalism in the scant presence in the Swiss city of the new U.S.

Administration, which contrasts with the blind of the Forum trust in Obama as virtually the only glimmer of hope experts estimate that storm subprime has been ahead at least one quarter of the world’s wealth, and that hits already harshly around the world, with the closure of factories and the increase in unemployment. Banks took excessive risks. Businessmen borrowed too. Regulators allowed all that. And now the taxpayers have to go in your It helps to clean all the garbage, which will trigger the State debt and end up having consequences on public goods such as healthcare, stressed yesterday the Nobel Prize in economics Joseph Stiglitz. There is a tremendous arrogance in all that has happened.

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