The United States is the New Tanzania? Ugh…
by Robert Williams, Investment U Contributor
Monday, September 28, 2009
Switzerland sits atop the overall ranking in The Global Competitiveness Report, just released by the World Economic Forum, representing the first time since 2004 that the United States doesn’t hold the top spot. But hey, that’s what being at the epicenter of a global financial crisis will do, right?
Singapore, Sweden and Denmark round out the top five.
The shocker, however, is how badly the United States scored for the soundness of its banks. It placed 108th, just ahead of Venezuela, Serbia and Vietnam and right behind Tanzania.
“Given that the financial crisis originated in large part in the United States, it is hardly surprising that there has been a weakening of the assessment of its financial market sophistication…” said the WEF.
Yeah. But Tanzania?
For the record, Tanzania borders nations like the Democratic Republic of Congo, Uganda and Kenya – not exactly models of stability or prosperity.
I knew the road back was long. But I didn’t realize it passed through impoverished countries, where day-today life is often a struggle.
A national savings rate (pre-credit crisis) of virtually zero, a massive budget deficit – projected at $9.05 trillion – and a significant stimulus spending package were identified as the causative factors.
Ahead of the tape,
Robert Williams
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In addition to once being a full-time trader of equities and equity derivatives, Robert Williams has served as the lead financial analyst for a Forbes top-50 private corporation and an analyst for the endowment of a major academic institution. He's also been profiled in such books as Trade with Passion and Purpose and Alexander Green's The Secret of Shelter Island. 
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