Channel NewsAsia publishes story claiming that the global financial crisis will last another two years according to global economic expert Eisuke Sakakibara. According to Dr. Sakakibara, who is a professor at Waseda University, the global economic crisis will last until 2010. Dr. Sakakibara said: “What triggered the sub-prime crisis was the decline in the housing price and the housing price is now anticipated to continue to decline until some time in the summer of 2010… That’s the basis of my prediction.”

An interesting analysis of the global crisis for sure, never the less I see a fundamental flaw or lack of circumference in this analysis. If you look at the global crisis and “blame” it on the decreasing housing prices, then you can saw this was a contributing factor. But what about everything that comes with it? Lost jobs? Bankrupt companies? Changes in fiscal policies? Changes in trade agreements? The list goes on. Everything affects something else, and the global chain of affects will surely surpass that of the individual affects.

Look at it like this: The sum of the whole is greater than that of it’s parts. So if we take Dr. Sakakibara’s prediction as diplomatic then the global financial crisis can last a whole lot longer than another two years.

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