Tommaso Padoa-Schioppa on the Financial Crisis - La Stampa
Interview with Stefano Lepri, La Stampa, 17 September 2008
Q. Wall Street investment banks go broke or struggle to survive; Communist China has enough dollars in its coffers to buy them all. To what kind of world globalization is leading us to?
A. «Globalization is in fact at a crucial juncture, made more difficult by too long delays in adopting corrective actions. Today's difficulties arise from three sources: financial instability, dearth of savings in the US, rise of Asia both as a low cost producer and a voracious consumer of fuel and food. The financial turmoil is only a part of the larger picture».
Q. Some years ago, globalization critics were pointing to the danger of a thoroughly Americanized world. On the contrary, the US is losing weight in the global economy.
A. «In the next few years, I believe, US contribution to global growth shall become scant. If a country needs to save more - it's quite obvious - its growth slows».
Q. After 1991, in a unipolar world, US power appeared bound to no limits. Wall Street investment bankers, too, were confident to them everything was allowed?
A. «Business people aren't always able to keep their heads cold when their business is in full flourish. It would be sad, though, if the current turmoil turned to arrogance all those who didn't make big mistakes up to this point»...