Despite global financial turmoil, a small country like Lebanon has shielded its banks, and instead of loosing money has seen its highest financial year in its history. This includes seeing people deposit up “to 500 million dollars in one week, double from what we have seen. People are converting their dollars to the Lebanese pound. ” ( Stated from the Governor of Lebanon’s Central Bank)
BBC News Interviewer: “The financial system is thriving, in Sept as US banks collapsed, money poured in, it is the best financial year in the country’s history..We require little debt and 30% of assets available for each bank, no speculation, and weak banks were forced to merge with bigger banks. ” Lebanon’s banking system has been up against constant political crises, wars, and in general the hardships of being a small Middle Eastern country under constant violence.
Buying and selling toxic debt, loans that have little chance of being repayed the Governor of Lebanon banned all banks from accepting such high risks investments, He said in May 2007 “our policies are built as a reaction to the leveraging taking worldwide, which has been worrying us.”
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A large problem though is the national debt of Lebanon, it has the highest GDP debt, and has a slump within its economic growth. However, Lebanon’s position as being a bridge between the West and the East since it is a Christian majority state, offers it protection–the West will not let it dissolve if its national debt became a problem.
The governor’s restrictions don’t seem to be going against market capitalism, so then why didn’t Capitol Hill ban the circulation of toxic debt? Was it work the risk those debts presented, considering unemployment is at the highest its been in 15 years?
A Miracle! America illustrates the Middle East as if there is no hope, nor is there any worth except to exploit their supply of oil. But apparently the Swiss are not the only ones that are prudent when it comes to the handling of finances.
Lebanon, despite its continuous turmoil whether its a Six Day War with Israel, or constant violence within its weakened political state, or its post-colonial progression it has still managed to be resilient in comparison to the dominant Western powers in play. Perhaps instead of constantly criticizing Middle Easterners, American should listen to their tips?