China Qick to Point During Economic Council

This week kicked off an annual economic council held in Davos, Switzerland. This is a huge conference that hears from political leaders as well as the private sector. Even many celebs have been present in the past, but this year China Premier came and pushed a lot of the blame on the United States for the state of the world economy as well as the huge losses china suffered in the US financial sector. I could not help but find this comical because they invested in us! They deemed Morgan Stanley, Freddie Mac, and Fannie Mae good investments despite not fully understanding them just as much as we did! You cannot just point the finger and say WTF, you need to do your homework just as much as we should have fully understood what it was that was going on.

From some things that I have hear among the market, there was a crash in 1907 because of the derivates trading that essentially allows insuring investments using advanced mathematics. This was outlawed after it caused the market horrors and then was passed again by President Clinton on his way out of the office. Yes the crisis may be American based, but don’t blame us because you can’t stimulate your own economy.