Why Germany Lost To Spain And Continues To Lose In Finance II

Part 2-

Drawing parallels, this is exactly how they behaved with financial markets. Their surprise ban on short selling and CDS was indeed odious, and still it was prolonged. The Germans, it seems, still feel that they live in a dystopian world, and they are the ones who have to set it right, with their traditionalist rules. Some German editorials on the web are talking of an Anglo- Saxon conspiracy to destabilize Germany through the Greek crisis!

German politicians abhor financial innovation of the 21st century and still believe in the archaic policies of the past. A time when laws were biased and an average investor had no real protection from defaults and frauds. Calling new innovative models like CDS “speculative” might be partially correct but blaming it completely for the mess is blatant hypocrisy.

Germany needs to learn from its world cup semi-final opponents Spain, how to embrace others and their diverse characteristics. And blend them into your own system. It said that Barcelona’s current flair and flamboyant style of play was brought to the football club in the 80’s by its Dutch coaches. From thereon, after years of adjustment and adaptations Spain borrowed the same game-play and has been successful in using it in the last 6 years.

Germans must come out of their conservative shell, and embrace the modern world and its free markets better. The way their engineering industry has grown leaps and bounds in the new era of alternate energy, policies too should open up more. Germany is conspicuous by its absence on the world stage, despite being de facto Europe’s powerhouse. It often remains quiescent on serious international issues and when it does speak out (rarely that is), it is rather disappointing.

The German starting XI reflects its diverse multi-cultural background and the new attacking flair innate within the young team. However, it seems the coach did not identify with this and imposed the “old German way”, which cost Germany the match and eventually the cup.

As I see it, Germany will continue to lose football finals and in finance, until wakes up like the rest of Europe and accepts the changing times.