EDUARD AGHAJANOV: CRISIS OF U.S. MORTGAGE MARKET WILL NOT AFFECT ARMENIAN ECONOMY

Noyan Tapan
Jan 30, 2008

YEREVAN, JANUARY 30, NOYAN TAPAN. The recent crisis in the
U.S. mortgage market cannot have any impact on Armenia’s economic
system, economist Eduard Aghajanov expressed an opinion at the
January 30 discussion. In his words, this crisis is the result
of some wrong economic steps taken by Americans, particularly,
the use of risky loans. E. Aghajanov explained that the crisis has
affected the economies of a number of European countries because
risky loans were distributed among banks of these countries, that is,
there was securitization. Therefore, according to E. Aghajanov, the
U.S. mortgage crisis has had a negative impact on those counries whose
financial systems are connected with securities of the U.S. mortgage
market. "There is no securities market in Armenia, so it is needless
to speak about consequences of the U.S. crisis in our country,"
the economist said.

As regards the U.S. economy, in the opinion of E. Aghajanov, it cannot
be be shattered by fluctuations of the mortage market. He explained
that the country’s GDP amounts to about 14 trillion dollars and the
loss of several hundred billion dollars is not so essential.