Monday, February 2, 2009

Putin Calls for Debt Cancellation

Vlad Putin calls for DEBT CANCELLATION. Putin is a very smart man, and his speech deserves to be read and fully contemplated. Frankly, he sounds more pro-freedom and pro-capitalist than we Americans. I guess we really shouldn't be surprised by that.

"Unfortunately, we have so far failed to comprehend the true scale of the ongoing crisis. But one thing is obvious: the extent of the recession and its scale will largely depend on specific high-precision measures, due to be charted by governments and business communities and on our coordinated and professional efforts. In our opinion, we must first atone for the past and open our cards, so to speak. This means we must assess the real situation and write off all hopeless debts and “bad” assets. True, this will be an extremely painful and unpleasant process. Far from everyone can accept such measures, fearing for their capitalisation, bonuses or reputation. However, we would “conserve” and prolong the crisis, unless we clean up our balance sheets. I believe financial authorities must work out the required mechanism for writing off debts that corresponds to today’s needs."

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