Do not panic!

When it comes to the crisis in financial costs, any gloomy predictions seem to be justified. Wild race for profits of the banks was burned unimaginable 10 500 billion. But is there reason to panic?

Experts warn of upcoming huge deficits in public budgets and legacy for future generations. But these are bezmislitsi. Indeed, the cost can be managed – primarily those in the rescue of the banks. It’s true that the state drew several hundred billion in this sector, but in this case mostly talking about bank guarantees. Real money flows only and only if safeguards are used. Currently no such thing happened. On the contrary: he won the state charges.

Needless dramatization

What financial institutions have been quite real, a sum sumarom-three percent of the country’s economic capacity. Such a thing can in no way be called a dramatic – even more so in exchange for receiving state shareholdings in the bank property. In the U.S., the eight largest banks in the meantime purchased back its shares from the government. As a result, the state budget there sunny four billion dollars.

Shares of Germany’s Commerzbank, owned by the state budget, are far from plus 127 million euros. Of course, the crisis raises and other costs resulting primarily from the fact that in times of weak economy, the state receives less tax revenue, but was forced to make a greater cost. Government debt will probably increase to 80 percent of GDP in 2010. Reason to panic but no. In the U.S. quota of debt during the Second World War amounted to 100%. During the 60 years it fell by half and without leading to cuts in social benefits for citizens.

Emergence is possible without drastic savings

How the Americans failed to return their loans? The stunning answer is: never returned. Government debt increased in absolute numbers even further – from 204 billion dollars in 1944 to 368 billion during the 1968th. Quota obligations – and this is the true measure of their level – dropped because the economy grew at a faster pace than making loans. The growth is therefore key to the consolidation of the budget. In good times and Germany’s budget began to swim again in normal water and without it being necessary orgies economies.

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