G-7 Seeks to Avert Collapse in Confidence

G-7 Seeks to Avert Collapse in Confidence

www.bloomberg.com

Group of Seven nations sought to head off a collapse in global investor confidence after the U.S. sovereign-rating downgrade and a sell-off in Italian and Spanish debt intensified threats to the world economic recovery.

The G-7 will take “all necessary measures to support financial stability and growth,” the nation’s finance ministers and central bankers said in a statement today. Members agreed to inject liquidity and act against disorderly currency moves if necessary.

The European Central Bank indicated separately that it will buy Italian and Spanish bonds and Japan signaled furt

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Well here it is all laid out and ready for execution. 2008 all over again! First I am sure they will implement another round of Quantitative easing (QE3), followed by another round of stimulus just repackaged. They are already doing anything they can to avert disaster, the only problem here is they always use the same tactics and always expect different results.


www.bloomberg.com
(visit the link for the full news article)

ETA:

“The G-7 just gave a raspberry to S&P and basically said its analysis is irrelevant,” said Diane Swonk, chief economist at Mesirow Financial Inc. in Chicago. “It is unclear whether the promise of coordinated efforts to provide liquidity will be enough to avert a panic.”

The funnier thing is they are already questioning their own tactics before they even implement them!

This time the stakes are higher. In 2008 everyone had money and jobs. US is broke and further loss of jobs will just incite unrest. People are at least a little more aware of what is going on this time. How couldn't anyone see this coming. 2008 hit most undetected last time. This time I don't think they will get away with bailouts. The world is watching now, and they are bloodthirsty this time.

The title of the thread should be G7 seeking collapse with confidence.

Originally posted by metaldemon2000
This time the stakes are higher. In 2008 everyone had money and jobs. US is broke and further loss of jobs will just incite unrest. People are at least a little more aware of what is going on this time. How couldn't anyone see this coming. 2008 hit most undetected last time. This time I don't think they will get away with bailouts. The world is watching now, and they are bloodthirsty this time.

The title of the thread should be G7 seeking collapse with confidence.

edit on 11/8/7 by metaldemon2000 because: (no reason given)

You are very correct, they won't get away with bailouts this time around. That is why the FED will just lend out the money and never even disclose it to the American public until years later when it is less relevant. The stakes are much much higher this time around though you are very correct there. All it would take at this point in the game is a 1% increase in interest rates to send ARM's into default all over again just like in 08'.

This time around is different. The US is being openly blamed for it this time and its only just begun. Inbthe next few weeks the lines in the sand will be drawn. Then the real fun begins.