Markets have to wait for recovery
Published 25/12/2011 | 05:00
Sir -- Congratulations to Declan Lynch on his wonderful article on the financial markets. (Sunday Independent, Dec 18, 2011). I believe the major flaw in everything they are doing is not recognising that nations can last and will last for hundreds of years. Thus, even when they make serious financial mistakes -- deficit budgeting, taking on high levels of debt -- they have the capacity to recover. But once they set on a corrective course, they must be given time to get their house in order.
This is the one thing the erring nations are not being given. Retrenchment budgets have been set, governments have been toppled, but markets refuse to wait for results to emerge.
People forget that nations need to borrow in national emergencies. This is now our national emergency but we will rectify all this when we have resolved our issues.