(CNS) -- The current financial crisis pummeling the United States and beyond is a sign that the so-called "new economy" and its risky investments have failed, the Vatican newspaper said.
The booming growth of financial markets did not correspond to real growth or concrete development for society because it created an artificially robust gross national product, said a Sept. 24 article in L'Osservatore Romano.
The only real growth registered in this crisis has been "the commissions, profits of the banks and bonuses for the managers," it said.
The article, with the headline "A costly illusion," was written by Ettore Gotti Tedeschi, an Italian economist and professor of financial ethics at the Catholic University of the Sacred Heart in Milan, Italy.
The U.S. financial meltdown has been blamed on "the greed of managers and lack of regulations. But curiously, no one ever refers to the indirect responsibility of the government's economic policy" which, he wrote, tried to cover the lack of any real economic development with a booming Wall Street.
He said the U.S. government's proposed bailout may stave off any worst-case scenario for its troubled financial markets, but it will not repair the root causes of the crisis....
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It's official. The Catholic Knight is retired. I'm hanging up the helmet and passing the torch. There will be no more articles, no more commentaries, no more calls to action. THIS BLOG IS CLOSED. I've spent a very long time thinking about this, I believe the time has come, and is a bit overdue. I want to thank my readers for everything, but most especially for your encouragement and your willingness to go out there and fight the good fight. So, that being the case, I've spend the last several weeks looking for bloggers who are fairly active, and best represent something akin to the way I think and what I believe. I recommend the following blogs for my readers to bookmark and check on regularly. Pick one as your favourite, or pick them all. They are all great.....