Enter multiple symbols separated by commas

Financial Industry Not at Fault for Crisis: Pro

This crisis is a “pure government debt crisis,” not one of the financial markets, and it is the regulators and the politicians' jobs to notice the bubbles that cause crises, said Karsten Schroeder, chairman of Amplitude Capital. He shared his insights.

“The thing I find quite irritating is that they (global governments) blame the financial industry for just rating their performance,” Schroeder told CNBC.

“The governments have been poorly managed for the last decade, if not even more, and all the market’s doing is reflecting that.”

Schroeder said the real cause of the crisis was the combination of excess liquidity available in the U.S. and the “political motivation” that "everyone" should own a house.

Schroeder also pointed out that investors are ultimately the ones who end up buying the government debt.

“And if you have no trust and no confidence in the future of the economy, in the way these countries are run, then you shouldn’t be surprised that you get beaten up in the market,” he said.

Scorecard — What He Said:

  • Schroeder's Previous Appearance on CNBC (May 3, 2010)

More Market Outlooks:

CNBC Data Pages:

CNBC Slideshows:


CNBC's Companies in the News:


  • Crisis Point Man Tells BP to Say More About Claims


  • Genzyme Says Accord Reached With Icahn


  • Sprint Says it Overstated EVO Launch Day Sales

Bank of America

  • Santander to Buy BofA's Stake in Santander Mexico


No immediate information was available for Schroeder or his firm.