GLOBAL: Heiner Flassbeck sharply criticized governments around the world that had not done more to prevent the present crisis. The markets should not have set prices and governments should have intervened.

According to Heiner Flassbeck, the crisis was not, as many insist, a mortgage crisis. "What we have seen is that speculation in the U.S. unleashed more speculative bubbles that burst all around the world.

He hopes that this will be a wakeup call, but at the same time said that the speculation economy is back.

"All the markets are still open and the players have returned,"he said.

"Those who speculate don't care whether the price of oil is too high or too low, or whether currencies don't serve their countries, all they care about is making money," said Flassbeck.

The developing countries, which are not responsible for the crisis, have been hit harder than the developed countries. Heiner Flassbeck believes that there is no desire on the part of the developed countries to help the developing countries.

"The whole world has allowed the present system to be constructed and then it collapsed. No country can resolve the economic crisis alone, on the contrary, it requires multilateral solutions."

Heiner Flassbeck stated that what is needed is,

"Courage and vigor from political leaders; governments must step in and regulate the markets. Those countries which are in a strong position must spend more money than weaker countries. Ultimately, deflation must be avoided and especially wage deflation."

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