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Current crisis more dangerous than last

By Tang Shuangning (Global Times)

13:52, October 24, 2011

Edited and translated by People's Daily Online

The bankruptcy of Lehman Brothers in September 2008 signaled the transformation of the American sub-prime crisis into the Global Financial Crisis. Since then, Wall Street has not been completely dead just as the global economy has not been completely alive.

Wall Street's sickness has evolved into a worldwide pandemic while in feeble Europe, the current European debt crisis has provoked much turbulence. In 2009, the financial crisis was alleviated slightly and some people believed there was bound to be a V-shaped rollback.

However, the recovery of the world economy cannot possibly be accomplished with one giant leap jump. Instead, it will take a gradual W-shaped course. From the delisting of Fannie Mae and Freddie Mac to the Lehman Brothers’ bankruptcy; from the Icelandic debt crisis to the Dubai crisis; from the downgrade of U.S. debt to the outburst of many European debts, my point of view has been proven all along. Now as the European debt crisis constantly deteriorates, China must attach great importance to steady and stable monetary policies, practice necessary "triangle" exchange policies, and pay attention to the structure and quality of such policies in addition to their aggregate quantity.

The current European debt crisis is different from the international financial crisis in 2008 in four aspects:

First, the crisis in 2008 was just a financial crisis, while the European debt crisis is not only a debt crisis but also it is also a political and social crisis.

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  1. Name

romanov at 2011-10-2580.94.16.*
2011-10-24.Mr.Professor,please explain me a such issue.I to give 10 yuan Mr.Professor to give me 100 yuan.To be deficit in professor pocket?Where to take money-90 yuan?.UE base crisis finance"s to be they system dotation .
wende at 2011-10-2471.125.85.*
A very good analytical piece. It is indeed a very depressing situation with a lot of bad effects coming our way.
  

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