Trade unionists and financial analysts have blasted the Government, alleging that it is misleading the country about the extent of the impact of the financial crisis in the United States on Jamaica.

In addressing a public forum of the Jamaica Confederation of Trade Unions (JCTU), on 'The state of the Jamaican economy', speakers urged the Bruce Golding-led administration to provide frank and analytical information on the possible ramifications of the situation in the US on the local financial sector.

Finance Minister Audley Shaw has been adamant that the financial crisis, stirring panic in the US and around the world, was not likely to have any major impact on Jamaica.

However, financial analyst Ralston Hyman chastised the Government for being slow to inform the nation about a serious issue that has become global.

Ridiculous

"No disrespect, but for the minister (Shaw) to be telling us that nothing will happen to Jamaica is ridiculous," said Hyman, at the forum that was held at the JCTU's Hope Boulevard, St Andrew, headquarters Tuesday evening.

Hyman said the US financial crisis was already affecting living conditions in Jamaica in terms of oil and food prices.

The financial analyst said the Government was in a state of denial, as consumers' purchasing power was on the decline.

"Get used to your money buying less. If you are not working, God help you," Hyman said.

Darron Thomas, expert on the financial market and competition policy, told the forum that it was the type of loans issued on mortgages that compounded the financial meltdown in the US.

He said most mortgage loans were used for consumption, such as buying motor vehicles, and not for business investment that would have been a better approach.

Loans for whom?

"So, it is not the fact that we make loans but what those loans are used for," said Thomas, who lectures at the University of the West Indies, Mona.

Thomas said that in treating the 'cold' that Jamaica was likely to catch from the US financial crisis, business loans should be provided by the private sector.

Among the other solutions Thomas offered were investing in the development of human capital and that the Government should negotiate with multilateral agencies to have debt obligations temporarily postponed.

"America has sneezed and the world has caught a cold," stressed Thomas.

Keith Collister, also a financial analyst, said the global crisis could last for another two years. "This is not a normal recession," he asserted.