A year ago, bankers were keeping low profile in their financial crisis talks, in an effort to avoid excessive media coverage. Today, the beacon that has started in the US credit market spread like wildfire throughout the entire financial world, and turned into a full-fledged economic hardship of the mankind. In an interview to Wall-Street, Dan Paul, chairman of Brokers’ Associations and vice-president at BSE, talks about the effects of the financial crisis over the capital market.
“Capitalism will change the way we see things”
Although some people were ready for a crisis, given the signs emerged by the capital market, its outburst still took many by surprise. “It’s like an earthquake where people either don’t understand what just happened or understand it and don’t know how things will settle down again”, said Dan Paul.
The managers’ greed, Dan Paul continued, was a psychological factor that paved the way for the financial crisis, because in fact, there were the very same errors of judgments that led to the Great Depressions in 1929.
“The Second World War ended the Great Depression, and I hope it will not happen the same now. The world is now more open-minded, and after all, we can say that the war in Iraq was the direct precursor to the devastating economic downturn, where billions of dollars were spent, funds of United States and of the entire world”, said the vicepresident of BSE.
Markets should not be self-regulated, Dan Paul added. In the end, the buyer’s intervention is essential, and the price is regulated by people anyway.
The end of the crisis will not change capitalism, but rather our way of thinking and discerning things. “We will see things from different standpoints, but the capitalism will remain unchanged. We are going through different times”.
A reshuffle of players in various sectors is inevitable and alread
