Do you think governments are running the risk of flooding markets with cash?

Paul Corcoran,
Financial Director, Nord Stream

This is a very extraordinary situation and governments are taking the necessary measures to prevent the situation from worsening. Despite government action, market liquidity is still very tight but showing signs of easing which hopefully indicates that governments are on the right track.

Tetsuya Ishikawa,
Author, How I caused the credit crunch

Yes. Ultimately, what got us into the mess was irresponsible lending – poor underwriting standards across the board. Of course, it seemed acceptable because the supply of credit seemed endless. Flooding the markets with cash runs the risk of providing a similarly false sense of security as well as encouraging a return to poor underwriting standards.

David Rowe,
CEO, Easynet

Yes, but they can always turn the tap off later. The irony is that this would in effect be a monetarist approach to pump priming. Either way the natural consequence of this “emergency” measure is inflation at some point and big public sector cuts later with rising pressure on the pound.

How much of a success do you consider the G20 summit to have been?

Paul Corcoran
Firstly it’s good to the see a united global approach to dealing with the problem. Bringing 20 diverse opinions together is always difficult but clearly some progress was made.

Tetsuya Ishikawa
The success is going to be measured by how coordinated the G20 countries are going to be in tackling this financial crisis. President Obama now seems to recognise the need to act together – a welcome change in tack from his original protectionist approach. But this needs to be carried through into actual policies and initiatives so that there are no gaping holes left open in the form of weak jurisdictions, which can otherwise be exploited.

David Rowe
It was reasonably successful overall as, by its conclusion, delegates were perceived to have arrived at a unified global approach to financial woes. The realignment of global financial power and regulation was pushed into the long grass a bit but will need to be dealt with sooner or later in order to unravel the unbalanced dollar based fate of the global financial system.

Is now the time to invest in green stimulus, or should we be focusing on proven strategies to haul ourselves out of trouble?

Paul Corcoran
Ultimately we should not lose sight that business operates under commercial rules. The focus on commerciality, especially given the current financial crisis, has seen some set-back in the development of sustainable energy supplies. The current crisis requires stimulus in all areas.

Tetsuya Ishikawa
There are no proven strategies for hauling ourselves out of the trouble we’re in today. The circumstances of today’s crisis are so unique that it’s dangerously narrow-minded to think there are. As for green stimulus, a stimulus is a stimulus. There’s no reason why we can’t combine the two wherever possible.

David Rowe
If we have to pump prime the economy then good money after bad is not optimal and neither is public sector works. So, nothing to lose by investing heavily in new technologies and helping us all feel better about the planet.

What do you consider to be the best way to deal with dropping Chinese exports?

Paul Corcoran
The dropping trade is not just an issue for China, it’s a global problem and can only be improved with stability and increasing consumer confidence.

Tetsuya Ishikawa
No comment.

David Rowe
Allow the Remnimbi to float freely, or return to the Gold standard, which admittedly is unlikely.

Here’s €10,000. Send offshore or keep it at home?

Paul Corcoran
At home.

Tetsuya Ishikawa
Keep it at home. Being cash rich is an advantage in times like these. Sending money offshore doesn’t particularly help me if I’m not going to be there.

David Rowe
Pay down any debt, or, if you don’t have any, put it away for a rainy day.