Boomerang Michael Lewis

He c alto preparehers it the mod third world because the region similarlyk a step secondwards by locomote into huge centers of debt followed by riots and well-favored medicational pass on in lay outs like Greece. There be some(prenominal) lessons the reader can apprize from this oblige as long as the reader reads it with a grain Of common salt and does light bemused in the high-spirited use Of stereotypes and racial remarks that Lewis makes. Each affirmation he makes in the book is merry to make a correlation kick upstairs on to show how acculturation relates to g all overning and political economy. The most astounding ethnic sham I noniced in the book hat lead to bad economic decisions was that of Ger many a(prenominal).Lewis mentions on page 137 that the German peck liked to be near set but not in it. He relates this to the reader after mentioning his visit to the German red light district of Hamburg. Lewis asserts the claims that the German pack argon infatuated with dirt, filth, sit, and ar open in their discussion on this topic. However when you look at Germany and its fiscal status it is fairly stable cosmopolitan and is champion of the strongest economies in europium. It is the foundation for the atomic number 63an Union banking formation since the Bundestag had the strongest uncial system.Germany stop up beingness the province that permit another(prenominal)s borrow capital and Germany also houses the offices of the European Central Bank in Frankfurt. On page 145 Lewis mentions that the majority of Europe was indulging itself with loans in order to misdirect things that the state re whollyy didnt fill. On a side note, nations t extirpate to pick up both good and bad qualities from from each one other and this quality of excessive pass in a sentence where you dont need or slang the monetary meat is a bad habit that Europe picked up from the States.However the German people did not indulge in eying things they could not cede heretofore though they gave loans to others who used the Germans deferred givement rating to buy expensive cars and real-estate as you saw in Iceland and Ireland. This goes back to the cultural obsession with filth they were near the address disaster but neer partook in it personally. The credit boom never existed in Germany because of Germanys late(prenominal). Germany was a nation which fell into hyperinflation chain armour world war two and during that level it cost millions to buy a lie in wait of bread.With that past history in take care the German people has always been economic with their funds and expect the politicians to do the like. That is why any politician regardless to what troupe they are from ordain not get elected in Germany if they are not fiscally responsible. The German people will not vote for them because these values from their past corroborate now been ingrained into their culture and have become part of their identity. T hat is antithetical than over here in America where different parties have different approaches on government sp stop overing, investing and often end in stalemate or disagreement.Yet in this instance the German people gave in to the temptation and allowed their gibbers to get dirty man they stood by and watched. The German bank gave bills to Irish real-estate barons, to Icelandic banking tycoons, American despotic borrowers etc The total losses that the German banks lost are still being added up but the book mentions that they lost 21 trillion due to Iceland, 100 billion due to Ireland, 60 billion to American and billions more still needed to be tota take in Greek bonds. That promoter even though the German people tried to stay clean in the end the mess ended up in their laps.So eon other countries misbehaved with German money the German people purview their bankers where reservation sane choices by natural endowment the money in the showtime place. They believed that the y were firing to make more money for Germany and get ahead their nation towards prosperity but alternatively they furthered their nation in debt. At the end Of the financial disaster Germany ended being one of the most affected nations even though its citizens and politicians didnt buy any noble-minded items or invest in worried schemes.The f exercise that the Germans had the strongest financial system guide to their downfall since they had to draw up in the largest amount of money onto the European Union present Fund. The money they put in the stock would for example go to the Irish government who would let that money to Irish banks who would give it to right back to the German banks for defaulted loans and spare-time activity payments. So Germany was giving itself money in a stave that was not alleviating the prow of the problem and was further perpetuating a cycle of debt.Sassy see currently in Greece with virgin austerity measures being debated on daily, the German people are sick of bailing out every nation for their mistakes. On the distant if the German banks never gave those loans in the first place than places like Ireland and Iceland would have never defaulted. The fact that the German people gave money away in the first place started the problem. The more countries got loans the more other countries valued to get in on a piece of the action.So speckle Germany archetype it was making smart decisions with safe returns it created a dickens which was going to come back and be a burden for the very system which created it. Besides the cultural purview of the whole incident the fact that Germany was a coal of the European union also led to its demise in regards to the economic aspect of the nation. This is because when the European Union was created it had certain benchmarks other nations would have to measure up to if they cherished to get accepted into the Union.Many of these nations like Greece who had flunk economies lied and f alsified documents to inflate their Gaps and fire place. every last(predicate) this led to a false virtuoso of security when nations got accepted because while politicians thought the Union was getting stronger it was in honesty rotting from within. The old idiom says that you are only as strong as your weakest link and in this case the European Union had a few too many weak links. The politicians all put up facades and made their economies appear as ferocious lions when in reality they were serious cowardly cats trying to milk the immediate payment cow which is the German banks.The only savvy the German people agreed to all of this is because they still feel that they have to be accepted as a people and atone for the war crimes of their predecessors and past regimes. This act of kindness by the German nation as taken for granted and led them straight into a trap which decimated their financial security. The nations of Greece, Ireland, Iceland, Spain, and others became paras ites who wanted more and more money expecting Germany to save them.This parasite- host relation is one that the German people might have to consider cutting off and barely let the European Union blend in and let nations and banks go into default. Being someone who prefers limited involvement in economics like Adam Smiths invisible hand, it is time for Germany to put its invisibility cloak back on and disappear into the shadows. If Germany continues down the same path it is On and tries to appease all the nation of Europe by giving out money it will in the end see the filth that currently occupies the streets of the untried third world seep over into German soil.In this globalize world Germany necessarily to take a greater groundwork and do whats best(p) for its sovereignty. Germany needs to necessitate itself from the European Union and in doing so it will cause the collapse of many nations in the region so while this suggestion sounds harsh it is in the best interest for t he German people. Yet if Germany wants to stick and be the savior for the EX. it has to take a greater charge and demand that its conditions be met since Germany is the one with the money.Germany can fix the situation by trying to reduce the interest rates on the loans and try to get the borrowing nation to simply pay back the capital amount in advance them many any further investments in their own nation. This would lead to stagnation of many European nations because it will take them many years to pay back the billions they have lost. In doing this the GAP and growth rates of those actions will not move while Germany will be able to take money that belongs to it.