god is dead

Russia and China blame crisis on debt binge
Wed Jan 28, 2009 3:57pm EST
By Guy Faulconbridge and Jason Subler

DAVOS, Switzerland (Reuters) - China and Russia blamed debt-fueled consumption on Wednesday for massive financial collapse and called for global cooperation to repair the world economy.

"The existing financial system has failed," Putin told business and political leaders holding their annual World Economic Forum in this Swiss ski resort.

Growth was based on greed where one center printed money without respite and consumed wealth, and another manufactured cheap goods and saved money, he said.

His clear swipe at the United States was echoed by Chinese Premier Wen Jiabao, who said the bad macroeconomic policies and unsustainable growth models of some countries "characterized by prolonged low savings and high consumption" were primary reasons for the crisis.

Wen also blamed the "blind pursuit of profit."

Despite the criticism of Western policies, both China and Russia pledged their support for open markets, refuted protectionism and called for the Group of 20 major economies to work swiftly toward a global regulatory system that would put world markets and financial institutions on a safer footing.

Certainly government solutions are in the driver's seat at meetings of business leaders and politicians in the Swiss mountain resort, a reversal from the usual gathering where Wall Street tycoons rule.