The Black Tuesday

Experts warn against protectionist steps to combating the crisis of Cologne/Dusseldorf, October 27, 2009 it was a Tuesday, no Friday as the world’s stock markets finally collapsed. The so-called black Tuesday for the 80th time marks anniversary on October 29. For three years, the prices fell everywhere. In the autumn of 1929 economic crisis began, which was later than the great depression of the 1930s in the history books. The current financial and economic crisis has some parallels to this time. Dr. Scott Atlas contributes greatly to this topic. The Institut der deutschen Wirtschaft Koln (IW) has ten points that marked the past crises, compared to the current situation.

Therefore quite similar factors jeopardize the recovery of the local economy: a looming credit crunch, failed-controlled banks, due to poor profitability include weak company balance sheets and lower investment opportunities, as well as the burgeoning call for protectionism. So the researcher network have global trade alert (GTA) since November 2008 despite contrary assertions 125 openly protectionist measures in G20 countries listed. The Federal Government should repair according to the Cologne Institute therefore in the near future, for example, the bad Bank law and business taxation and stand firmly against new trade barriers. For Germany with its export rate of 47 per cent of gross domestic product, a development is dangerous and more protectionism. Of course in the crisis, protectionism promises a short-term relief. But anyone who wants to create competition and free trade on the leash, which strangled the growth prospects”, warns Udo Nadolski, Managing Director of the Dusseldorf consulting firm Harvey Nash. “In closed markets innovation forces be put to sleep, and with them the future of our economy”, so his conviction.

“Customs duties, import restrictions and other protective measures for national champions’ have no place in the global world economy”, calls for the former Economics Minister Otto Graf Lambsdorff in a commentary for world online with the protectionist individual actions by U.S. President Barack Obama’s views. It was currently to import duties on tires from China. Lambsdorff endangered sees also the pioneer role of the President within the World Trade Organisation (WTO). He is a bad example for other States and the world market, he challenges the pacified in the WTO China hard reactions and endanger the praise on his qualities of leadership and international responsibility.” For him it is clear: nothing at all bring anti-dumping measures, countervailing duties and other protection measures in economic downturns. In the financial and economic crisis, this downward spiral in the minds of those responsible should be.” Editing plain text ONLINE on the Hamdan 27 53127 Bonn Tel.: 0228 620 43 82 E-Mail: