Adonis Diaries

FedEx President has a word to say; (Mar. 14, 2010)

          Frederick Smith, founder and President of FedEx, employing 300,000 around the world had this to say on the ridiculous ideology that finance contributed to the world economic boom:

          “Finance was largely a smoke screen… In 1983, the financial sector represented 155 of the profit in American economy.  In 2008, it jumped to the third in total profit.  Between these two dates, finance has invented nothing to justify appropriating so much profit share.  All that financiers invented was a system of splitting the actives and diffusing them in the economy as fast as electronic markets absorbed.  The financiers pretended that this diffusion created value and permitted diversification of risks.  In fact, it added no value and concentrated the risks.”

          Jean-Claude Trichet, President of the European Union Central Bank said: “I do think that our democracies will accept a second times that states will fly to rescue of the financial institutions and the real economy as they did during this latest crash”

          Joseph E. Stieglitz, Nobel Prize for economy and former President Clinton economic advisor and Vice president of the World Bank wrote in (The Great disillusion, 2002):  “Today globalization is not working; not for the poor of the world; not for the environment; and not for the world economic stability.  It was a unilateral imposition of the rules of the game.”  Slieglitz published recently “When capitalism lost its head, 2009”