Financial "bail-out packages"
Quick poll: Do you think that financial "bail-out packages" are the right way to revitalise global industries in the current climate?
Comment from Andrew Adie, Director, Citigate Dewe Rogerson:
The result of the web-visitors' poll is surprising but I suspect it reflects widespread anger at the perceived failures of the financial system and of regulators around the world to prevent the current economic crisis.
While financial bail-outs may be controversial and divide opinion, the reality is that something has to be done and the core question is ‘what is the alternative’?
In any economic climate, capital is king. It is very difficult for business to respond to market opportunities without it.
However, capital is only the facilitator, the driver for business is demand and that is clearly highly depressed by the current low consumer and business liquidity levels. So, while controversial, the injection of capital through bail-out packages is a positive move.
Most people seem to agree that a major rethink of global financial structures is essential however at present the impact of these bail-out packages and interest rate cuts have yet to be fully felt – so history may be a kinder judge than this poll."