The crisis of 2007 requires to regulate more

Capitalism is like the kitchen: when it covers must reduce heat. Otherwise it goes. This b.a.-ba, the leaders of the G20 meeting in London did lead The question that was asked them but was to know how to keep a world strong growth if it the "covers", i.e. If it regulates more. How to get good Grill schumpéteriennes, hamburgers, the yakitoris and the lacquered duck, small broths

Paul Volker, Chairman of the Federal Reserve in the 1980s, knew what he was doing when he "deregulated" American finance. In his Office, major bankers marched to demand the surrender of the Glass - Steagall Act, adopted in 1933 in the great depression to constrain banks. They him seek the freedom and threaten to go to London, where the rule is more loose. Before accepting, Paul Volker hesitates because he knows that it opens the door to a faster but more unstable world.

Capitalism does not offer cheese and dessert: he must choose between a scheme smoothly but slow and strong growth but with bubbles and crises. The fun shooters that history is that the rank of the réclameurs bankers was Citicorp, today on nationalization, and that the venerable Volker is now Advisor to Barack Obama...

Laurence Boone, Chief Economist with Barclays Capital, has engaged in of impertinent calculations. Assuming that we have touched bottom and the recession end in 2010, as recent indicators say, what have been the country which, in retrospect 2002-2010, will be well or poorly spent the episode: strong growth and then sharp drop, bubble and the bubble imploded Result: the United States WINS! End of 2010, "despite the recession of 2009, real GDP would end 15 above the level of 2002 and their unemployment would have increased by 3 points to 9 ". The "sub-prime" finally credits, it propels you economy!

Second winner: Britain. Wealth will revel increased by 12, but, it is true, unemployment will be strongly up, reaching almost 10. The Spain will have maintained strong growth gain (15.8) but his unemployment, which will go back to 23, destroyed the joy of this performance! The France ranks, habit, in the middle of the Pack, its GDP earning 10 and unemployment only 2 points. But as he was already of very high, the number of job-seekers rises to more than 10. The losers are the Germany, whose GDP grows by 5 and unemployment reached 9, and the Italy, which is stagnant over the period while its jobless rate moves little, 9; a decade zero for the peninsula thus.

It objected that debt America will have to slow down permanently and it benefited also from "basic" technological and demographic unique. But, beyond the fact that it is not safe, liberalism is also to open its borders to Latin American and Asian immigrants, and the fundamental question remains asked the contrary relationship between regulation and growth. Or rather: how to invent a regulation which does not bridle innovation, competition, jobs, success How to cover the pans without making the insipid dish

The half-century of strong regulation, from 1930 to 1980, was a time of reconstruction of economies ruined by the crisis and then by the war. Same observation for the emergence of China, countries very regulated if it is: it's a catch-up. In 1980, the developed world entered the Liberal years, who will, in sum, made of strong growth in emerging countries but also to the North. The crisis of 2007 requires to regulate more. But how to do it without causing a back chilling return Say that the English are boiling their beef, which does not preclude them from pumped up first place in the City, but it would prefer not to use them as a culinary model.