OWS as a response… • UN Secretary General Ban Ki Moon said: What you are seeing all around the world, starting from Wall Street, people are showing their frustrations.
Challenges to effective resolutions • Inconsistent policy approaches by many developed states. • Inadequate focus on medium to longer term measures to help rebuild stability and confidence . • Persistent weakness in the banking system due to toxic debt levels never fully addressed or remedied. • Globalisation has made many banks too big and beyond the effective supervision of just a state, new frameworks are needed to address such issues that may well become more common in future. • Financial opportunities/products are well ahead of financial regulation and state control.
Why can’t anyone agree? Keynesian/Krugman VS Austerity/IMF http://www.youtube.com/watch?v=GTQnarzmTOc
Consequences • The PIIIGS (the highly indebted and vulnerable) the crisis has had a direct impact on their sovereignty. • Strained relations between some states (Greece & Germany, China & USA, China & EU, Iceland & UK) • China has looked to reposition itself as major economic player • Rise of the ‘Tea Party’ in the US and polarizing effects on Congress, fiscal policy/debt ceiling and 2012 Presidential Election.