This article by Bloomberg questions why banks should be bailed out when they can simply be outsourced instead. The author of this article has an interesting idea about what fragile banks should do as a way to get out of debt. The argument is made that the United States is a global leader in finance and should be "exporting" our services to the rest of the world. The author sees high client potential pass the U.S. borders.
"At the end of 2011, hedge funds, mutual funds and other U.S. institutions managed about $33 trillion in assets around the world, more than three times the amount commanded by the six largest U.S. banks. The asset managers’ activities support domestic and global growth, distribute risk and reinforce market discipline."
I am hesitant that after the financial crisis global consumers will be willing to trust U.S. banks and the financial sector in general. Do you think the financial crisis has effected the United States' reputation with the rest of the world? Again, if you studied aboard what did people think about the financial crisis? Do people globally blame the United States' crash for having negative effects on their economies domestically?
I felt like Thailand was a bit removed from the financial world in general. Maybe it is just that the developing world is less dependent on global finance than developed countries, but people almost never talked about economic downturn.
ReplyDeleteThe Australians I encountered abroad knew a lot about the financial crisis and made jokes about how bad our economy was but they didn't express particular concern for the overall health of the economy. They were eager to take advantage of the U.S.'s current situation but they were optimistic about the economies future recovery. I think overall the United States' reputation has lost some of its credibility but not enough to severely increase negative sentiments about the country. In my experience if you are in a country that thinks highly of Americans, chances are people will continue to think highly of Americans.
ReplyDeleteI agree with that completely, if a country thinks highly of another, they will continue to think highly of them, even through poor times. Maybe not as highly, but they wouldn't lose all faith just because of one event, even if that event had an awful effect on the nation.
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