Mirtchev, A. (2008, October 13). A “Pass-Key” Opening the Door Out of the Crisis? – While Worldwide “Bailout Packages” are Perceived as a “Necessary Evil” there is a Hefty Price to be Paid. Dow Jones.
Dr. Alexander Mirtchev, President of Krull Corp., expressed doubt about the proclaimed benefits of the massive bailout packages established by European Union members and the United States in an effort to boost confidence in crisis-hit markets. He noted that these bailout packages do not have the intrinsic capability to affect the economic strategy of the major economies, including those with the highest economic growth in the world at present – rapidly developing and emerging market economies. On the other hand, and in particular from the perspective of the increasingly post-industrial developed economies, these strategies carry the risk of mounting sovereign debt and other market repercussions. As far as the emerging markets are concerned, they are unlikely to remain satisfied by continuing to be considered “second string” in international trade relations and to accept the economic security framework imposed by the developed economies. Starting from the premise that emerging markets are far from “decoupled” from the rest of the world, it is to be anticipated that government intervention by the leading economies may cause certain disruptions in the international trade framework established over the course of the last 20 years, possibly resulting in domestic retrenchment and protectionist policies.