Davos is a well-rehearsed event and everyone knows the part they should play. Business and political leaders gather each year to tackle the major challenges of a global economy while the rest of the world, or those of its citizens who are interested, look on from afar. But this year, for obvious reasons, things are different. The notion of leadership has been coupled in the public mind with that of responsibility. The tone here is a little more humble and the attitude more open-minded. There’s a recognition that new thinking is required. A suitable time, perhaps, to turn the tables on convention and have Davos delegates ask the questions they can’t answer and for global citizens to offer solutions.
Gamefully opening the discourse is Professor Klaus Schwab, Founder and President of the World Economic Forum.
If you’ve got suggestions for Klaus then use the comments section below.
The crisis has to run its course. The best resolution to this problem is to let the market eliminate the problems through bankruptcy. Attempts to prop up failed institutions and businesses is fruitless, these entities need to fail, otherwise we'll never have a solid foundation to build upon. Also, there has to be transparency and revision to central bank policy, we can't have central banks manipulating the markets the way they have in the past. Controlling market behavior through artificially low interest rates and currency inflation does not work...the present situation is a clear testament to the failings of current economic thought.
The failings of central economic planning we're supposed be have been killed off, yet here we are again trying to run a supposed free market economy through central economic planning.
Unless we cease this incessant meddling we'll continue to get more of the same. Let the liquidation of debt occur and allow better business managers to acquire the assets and move forward. The idea that we reward failure through bailout policy is absurd. And the idea that we reward private sector failure with public sector money is even more disturbing.
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[...] Nevertheless, World Economic Forum President Klaus Schwab set an excellent example (and got a very healthy response): [...]
No bailouts, no fiat currency, no federal reserve, no government debt, no financial ‘industry’. Only goods and services should be traded in the real economy. Credit default swaps should be declared void due to force majeur.
Putin and Wen pointed towards the politics in the US and the UK and partly they are right.
Wrong macro economics and lack of regulation allowed the bubble to grow until it was not controllable anymore.
So what have we learned out of that? Change the politicians in the US(already happened) and the UK(will happen).
I would like to add another culprit to Putin and Wen`s point of view: US/ UK MBA mangement culture,share holder value culture and greedy irresponsible CEOs sometimes called “leaders”.
This overpaid, short sightened, personally not responsible parasites on top of huge companies should be made personally responsible for losses occured.
They must loose their houses and not receive bonuses instead.
Obama was rightly angry - there should be a mini revolution and we should throw this CEO bankers, Madoffs in prison and confiscate their money to build schools and help the poor. Instead their institutions get our money and we get their debt - hey what a good deal - how will Obama explain this to his citizens!
Run companies with personally responsible “entrepeneur style” people and see what will happen. I can give of course one example: Porsche. Their CEO is personally responsible and would have lost his house if he would have got it wrong - but he hasn`t.
Finally leave the entrepeneurs alone to run succesfully their companies and look for a social market economy as the new third way as obviously capitalism and socialism have failed in this world.
Post Offices are everywhere and the safest money houses; they should arrange all transactions including mortgages and insurances. The taxman, who knows all about everyone and only takes presently can also give timely advice, arrange extra time to pay and arrange above all, good financial partnerships or ‘marriages’ between the rich and ‘poor’ to benefit all citizens equally.
Who needs greedy Bankers who have disgraced and violated the Founder of The Bank of America.