Events

Makoto Utsumi

The global economy under a new financial paradigm

The Rafael del Pino Foundation hosted the Keynote Lecture by Makoto Utsumi entitled "The global economy under a new financial paradigm", as part of the series of keynote lectures "Lessons from the crisis", on 9 June 2010.

Makoto Utsumi stated that "In relation to the subprime crisis in the United States, the US rating agencies bear undoubted responsibility for the origin of the crisis. They made their first mistake by assigning very high ratings to financial products that relied on subprime mortgage loans, even when the housing market had already shown signs of weakness. The second mistake came just as the impact of the real estate sector began to be felt in the financial markets. The rating agencies pre-empted the market itself with aggressive rating cuts. In my culture it would not have been possible to make this kind of mistake.

Regarding the latest developments in Greece and Hungary, Makoto Utsumi said, "I don't think the euro is in danger. When a country - in this case, a region - is in difficulties, the market tends to see only the weaknesses of the area and vice versa; that's why there are over-reactions. What has happened in Spain with the real estate market is very similar to what happened in Japan. The difference is that, here, you have support in the Eurozone and I don't think you are going to follow the same path that my country followed.

The Rafael del Pino Foundation is not responsible for the comments, opinions or statements made by the people who participate in its activities and which are expressed as a result of their inalienable right to freedom of expression and under their sole responsibility. The contents included in the summary of this conference are the result of the debates held at the meeting held for this purpose at the Foundation and are the responsibility of their authors.

The Rafael del Pino Foundation is not responsible for any comments, opinions or statements made by third parties. In this respect, the FRP is not obliged to monitor the views expressed by such third parties who participate in its activities and which are expressed as a result of their inalienable right to freedom of expression and under their own responsibility. The contents included in the summary of this conference are the result of the discussions that took place during the conference organised for this purpose at the Foundation and are the sole responsibility of its authors.