Vaud Economy Event - May 20 2009

On May 20th, 15 Democrats Abroad members and friends gathered in Vaud to discuss the global economic crisis. After enjoying some local wines and trying Bill’s famous chilli and Raffi’s unbelievable tapenade, we left the terrace and views over Lac Léman to settle into some more serious business. To set the tone and gain some insight on what brought on the crisis, we watched the PBS FRONTLINE documentary : Inside the Meltdown. Here are some reactions and interesting discussion points that came about:

"It is a discouraging fact to learn that nine people were called together to save the US economy"  - after seeing in the documentary that Secretary Paulson had called the CEOs of the 9 largest US banks together to impose his decision on what the fate of the US banks would be.

"I reject the premise that companies are too big to fail. This brings to mind an oligarchical system similar to the one in Russia."

"Property speculation and making money on homes is not something that exists in Switzerland, as prices are heavily regulated. The US has gotten into trouble because in the States home ownership became a generator of wealth. For example, in California, house prices have always boomed. Americans see home ownership as their way to grab a piece of the pie."

"Regulation only works when there are good intentions. Otherwise, people will always find a way to beat it and find loop holes as a result of greed. Without regulation, banks went after short term gains without regard for the long term need of the society."

"The mass centralization of banks is one cause of this crisis. Where have all the local banks gone ? Condensing power into a small number of very large banks is the systemic problem."

"This current crisis brings to mind the quote : Extreme forms of capitalism is also a form of communism."

We look forward to the next gathering in Vaud to focus on President Obama’s Healthcare reform. Check this page for announcements and updates!