Angela Merkel says state must keep markets in check


BERLIN – German Chancellor Angela Merkel says the state must watch over the market to prevent the excesses that led to the 2008 financial crisis.

Merkel used her New Year’s speech broadcast Monday to warn that the lessons of the market collapse five years ago haven’t been fully learned yet.

The German chancellor says greater international efforts are needed to control financial markets and prevent the “irresponsibility” that began when the U.S. subprime mortgage bubble burst.

Merkel warned that reforms agreed to by governments to end the subsequent European sovereign debt crisis would require patience.

Europe’s economic turmoil “isn’t overcome by a long stretch,” she said.

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Angela Merkel says state must keep markets in check

  1. The state is more at fault than the markets. It was the state that created a giant bubble with rock-bottom interest rates. It was the state that subsidized home ownership. The last thing we need is for the state to do more damage to the markets.

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