Another iBratter noted that September 19 will mark the day that the world of finance changed forever - like Black Thursday in 1929. (I'm too lazy to look up who made the statement)
I've suggested that one of the things September 19 will mark is the end of America's leadership in global finance. Over the last several months, other countries' economies have suffered as a result of the sub-prime mortgage crisis. Ireland, for example, has had its booming economy stunted, halted in its tracks. The reason isn't that their economy is weak or unstable, its that their banks and financial institutions are dependent on U.S. banks and the U.S. financial markets.
A credit crunch in the U.S. means a credit crunch in the rest of the world, arresting even healthy, growing economies.
As the U.S. dollar loses value, players in the dollar-based global economy are losers. Global inflation is rising and, although the bailout is welcomed overseas, it is going to exacerbate inflation.
I predicted last weekend (to myself, anyway) that Europe would not stand for the status quo for very long. With their robust economy, there's no reason for them to continue to suffer under our financial blundering. I think we'll see the rise of the Euro as the new world currency, and Brussels will set global economic policy.
And today, a shot across our bow:
"Germany blamed the Anglo-Saxon capitalist model today for spawning the global financial crisis, saying the United States would lose its financial superpower status and will now have to accept greater market regulation.
In unusually stark language, German Finance Minister Peer Steinbrueck told the German parliament the financial crisis would leave "deep marks" and proposed eight measures to address it, including a ban on speculative short-selling and an increase in bank capital requirements to offset credit risks.
"The world will never be as it was before the crisis," Steinbrueck, a deputy leader of the centre-left Social Democrats, told the Bundestag lower house.
"The United States will lose its superpower status in the world financial system. The world financial system will become more multi-polar," he said.
Steinbrueck lay the blame for the crisis squarely on the United States and what he called an Anglo-Saxon drive for double-digit profits and massive bonuses for bankers and company executives.
"Investment bankers and politicians in New York, Washington and London were not willing to give these up," he said. "Wall Street will never be what it was."
The Europeans are angry, and perhaps rightfully so.