Development of Central Banks and Governments policy into the Creation of a New Breed of Sovereign Funds with strategic function to rescue and rebuild: Economic Reconstruction Institutions

“Tell us briefly: How did it all happened?”

Concerning the current crisis, many among clients, family and friends asked me insistently: “How did it all happened? And where are we going from here?” The technical explanations seemed to be too long and complex. Many had been provided already. So, I answered with the following parable from the book “The Prophet” by Kahlil Gibran, so that all could understand.

Financial involution and evolution of economic patterns: Demise of leading banks and opportunities for the “Italian system”

The current financial crisis will go through the necessary ‘mutations’ of major main market players, the previous excesses will be rectified, and, notwithstanding the dangerous turbulences, it will find a positive solution in the next 24 to 36 months. The capitalistic system will come out of it different but stronger. New opportunities present themselves and have the capability to generate deep changes. Emerges strongly the need of an operating enterprise model based on sustainability, on a more gradual and reasonable growth and a more solid development, guided by a longer term horizon: these are the new necessary ingredients to succeed 2.