The Decline of Davos

When I try to bring up a mental image of Davos Man these days, I envisage a bruised and beaten Danny Aiello at the end of Leon (aka The Professional), telling Natalie Portman that he's the best place for her to keep her money: "Like a bank, you know, except better than a bank, because, you know, banks always get knocked off."

John Gapper, today, says that the Satyam fraud "may take some of the gloss away from the India/Davos axis"; the fact is that the entire schmooztastic gabfest has lost most of its gloss over the past 12 months. Since Davos is dedicated primarily to extolling the wonders of globalization, I wonder what it will be like this year.

Much of the present economic nightmare can be blamed on globalization, I think: it was the global liquidity glut, and the concomitant demand for a bit of extra yield on fixed-income assets, which encouraged the lax subprime underwriting which etc etc. If the world hadn't been perfectly happy to throw trillions of dollars a year into America's bottomless appetite for capital, the bubble would never have happened, and neither would the subsequent bust.

What's more, the financial crisis has actually helped the world's not-rich, by bringing down food prices, commodity prices, and inflation, much more than any high-concept "creative capitalism" or the suchlike has ever done.

Of course, it's easy to forget such concerns when you're whizzing down a black run in Klosters or hitching a ride on a Google founder's private jet. But Davos needs to preserve its relevance, otherwise it will wither away, an artifact of the bubble years. And it's not obvious how it can do that.

Comments

[Socialism c...:]

No other nation suffers from our politically correct thinking...so what we will see is other countries go "protectionist" and the U.S. will shy away from it due to the stranglehold of the left-wing globalist cabal. That's when the real pain begins.

Jan 08 04:48 PM

[Anthony Alfidi:]

The pendulum may swing to Jackson Hole, Wyoming, where the Fed sponsors an annual conclave. The Fed will be the focus of attention in 2009 as its deflation-fighting policies bear fruit, so the Davos folks had better put in their reservations now. They already have the warm clothing they'll need.

Jan 09 12:57 AM

[notsosmart:]

a meeting of all the lying ceo scoundrels paid for by bailout dollars.the money honey wll be there to interview them for the sheeples who dont know or care how they are fleeced as long as the beer flows & they can get to the stadium.it would be funny if it wasnt so sad & affect our children & grandchildren.yes bring on the best food & wine while we figure out the next scam.i think it might be a AAA rated liars derivative.

Jan 09 04:34 PM

[HaavBline:]

Ostrich farm! Heads in the sand.

Jan 10 12:47 AM

[HaavBline:]

Technology drives the world together. No one can stop it. Lead, be lead, or be marginalized. The choices are very clear.

Jan 10 12:52 AM