The times they are a-changing, turmoil in the financial market have different terms in different ages, from the 30s of last century, it was know as economic recession, and then namely stock market disasters, financial crisis, financial hurricane and the latest term is know as financial tsunami.
So do not judge people by appearance, you can see whether he or she is young enough by the words. There are five common terms which superficially seemed no difference, but actually it denotes the psychological condition of the person involved. Whether he is using old people’s term or catching with the latest trend. Most of my students are using the term of financial crisis, I don’t like that. It’s the term of people in their mid 40 or 50 of ages. Why students of 20 years of age would use the term of 40 – 50s, for it’s the ages of their teachers and they get know of the term from them. And for people over 60 years of age, they would use the term of financial hurricane to explicit.
The latest term in this year is financial tsunami, surely I want my students to have the experience of those masters in their ages of 60, but for the aggressive power and psychological condition, please keep it in the age as you should time, and chase up what is happening under the sun. I also learnt the expressions of sofa, stool, floor and TA from my young students in your xiaonei.com, and play the game of electronic pets; so as to merge together with you young people. So for those studying in the business school, please keep an eye on what is happening in Wall Street.
So why is this tsunami so serious, besides the wrong decision of the financial leaders involved, it is due to the political system of America?
People should have heard of the bankruptcy of the investment bank named Lehman Brothers. Everything started at that time. The belief of American economy is that in free trade, that is the government should not interfere with commercial decisions unless it in is the last minute of necessity. The Treasury of America wrongly judged that it was not the last minute and let Lehman Brothers died, he only arranged to find buyer for Lehman Brothers but was not willing to guarantee for the debts by the Federal Reserve. Therefore the purchase failed. The bankruptcy of Lehman Brothers led to a landside in the economy of the whole world. Every government at length had to come out to purchase the banks in adversity. Were they decided to purchase the Lehman Brothers, and then now other governments need not to purchase so many banks worldwide.
During the Bush administration, actually he has changed 3 Treasuries, but this time why he would not changed another one, simply because the handover ceremony of the presidential seat is coming. Even if a new treasury is coming up, what can he do in the next few months? But his new administration still can not exercise their power, the old administration still carrying on their format, and thus worsen the condition more.
Mind that in European countries and African countries, the diminishing leaders have to step down their seat at once, that is on the day of vote of no confidence, or on the day of an early election. Those countries are using congressional systems that mean the leader of the majority party in the congress will the leader of the country at once. There’s no transition period and have to change leader immediately after the announcement of the election result. For if the old government is not welcome, he should give up the seat to the new movement and let them carry out new plans at once. For time is so precious !
Now the whole world is waiting with Obama for two and a half month. The new administration is waiting and foreseeing but cannot interfere with what is happening. The old administration cannot carry out long term plans as a lot of them will be ruled out by the new government. It is a waste of time, not only waste the time of American people, but wasting the time of 7,000,000,000 people in the world.
While in USA and South American countries, they mainly use presidential systems which would have a transition period for handover. Comparatively, the power of a leader in the presidential system is greater than that of the congressional system for presidents can not be pulled down so easily. While the congressional system in Japan made them changed 15 leaders in the past 22 years.
America has never been so anxious in waiting the new president to transit in the past 232 years of history. When you want to understand the different systems of leadership, please enter my article in Sept named Congressional Glance as following :
Please scroll on the right hand side of this page, and you will see a column named “Categories”. Just click on the item”Gambling & Investment” and you can see my related article concerning this topic.
This article also appears in my other blog of http://renren.com/danielyue2009 and normally will be renewed on Saturday evening .