Subject: Economy

Posted by Richard Turnock on 10/19/2008

Message:

The US economic crisis rolled across the global financial markets because the General Agreement on Trade Services (GATS) deregulated global consumer financial services.

Now the European Union is going to reverse the US and British leadership and change GATS.

In 1997 a study by the World Trade Organization (WTO sponsors GATS) warned against the problem of bad loans by banks and the emergence of a banking crisis when banks are reckless. They went on to describe a vicious cycle that starts with inadequate banking supervision (page 25, WTO Secretariat study on financial services, 1997: Opening Markets in Financial Services and the Role of the GATS).

Follow Ups:

Economy - Jack Harich 10/20/2008 
Economy - Richard Turnock 10/20/2008