Mirtchev, A. (2008, September 20). Tomorrow’s Exit Strategy Should be in Place Today – The Already Inevitable Bailout Packages Should be Accompanied by a Viable Market-oriented Exit Strategy. AllBusiness.
The unprecedented U.S. government and other developed economies’ bailout plans, prompted Dr. Alexander Mirtchev, President of Krull Corp., to comment that such massive state intervention will require a declared market-oriented exit strategy for its ultimate success. He believes that, faced with the exigencies of the credit crunch, combined with public pressure and the needs of the political calendar, governments had little choice but to take visible steps. However, the bailouts do not provide a way out of the crisis, but rather represent a stop-gap measure. His view is that the “Law of Unintended Consequences” should not be ignored. In particular, governments that have committed themselves to such a market intrusion should consider the implications of how targeting one industry affects other sectors. Mirtchev also argues that the fallout from the developed economies’ intervention could affect the rest of the world including the future power equilibrium of the global economy and the patterns of interrelations that have governed it in the last three to four decades. He emphasized that, in contrast with the developed economies, the diversity of emerging markets could prompt differing reactions to the financial crisis, contingent on the clamor for more government intervention not drowning out the voice of the free market.