German Banking System
- Michael Hudson stating that the Germans had a superior banking system set up in the time of Bismarck. It was industry focused. US & other western banks lend on property and land with the means of production financed by the stock market.
In 1914 the west feared the Germans would win WW1 as they had an industrial focused banking system. German industry would be more efficient as the banking system was still there post-WW1. The industrially focused banking system worked brilliantly for Hitler enabling the country to fight above its weight. The UK suspended the stock market in WW2 and relied on a banking system that was not equipped to deal with industry - the USA banking system was no better. The USA largely dismantled the German system after WW2 stating it was Hitler's banking system, when it dated from Bismarck.
Old habits die hard and the industrial focus of the German banking system did not fully go away. Today Germany rode the Credit Crunch much easier than others.