The end of globaliziation?
Interesting post by Brad Sester, suggesting we can expect a pull back from the global economy:
The FT – more than most – has recognized the challenges created by a global banking system and national regulation. A recent leader argued: “The current mismatch of globalised finance and national governance is unsustainable. Either governance becomes more globalised or finance less globalised.“
My guess is that finance will necessarily become a bit more national. The current crisis has shown than highly leveraged intermediaries require a government backstop, and for now there is no global taxpayer willing to bailout global banks that go bad.
Finance has traditionally been the most international of all types of business. This is true going back centuries, to when the merchants of Venice were making loans to the Ottaman Empire, and Genoa was helping Spain finance explorations of the New World, way back in the 1400s. If finance pulls back, then surely all other forms of industry are likely to pull back as well.