Following what have been happening in Greece, Spain, and Portugal makes me worried. The government debts in these countries keep rising. Government deficits are on the rise. At the same time, unemployment rates are still high. They still suffer from recession. They need stimulus package, they need money to stimulate their economy.
Until now, there is no clear solution to help these countries. Financial investors are already panic, watching the development in these countries.
We are also neither sure of the development in Dubai. Will Dubai be able to pay the debt they have to pay this year? And, what will be the impact of China’s tightening economic policy? It is very likely that China will give more attention to its domestic economy. Will that mean less import from China? If so, China cannot be expected to help lifting many economies depending on export to China.
Worse, until now there has been no worldwide fundamental change in the way financial system is run. It is only Obama, who dares to make an explicit war on the financial system. Hopefully, leaders in other countries follow what Obama has done.
I really hope there will not be any second global crisis.
7 February 2010