The G 20 countries wrapped up their ground breaking summit with amazing cooperation among members. The tackled a wide range of problems and were able to agree on just about every key issue.
Let's look at some specific policies that the G 20 members agreed upon:
- Regarding the matter of stimulus, they agreed to boost the International Monetary Fund's lending power to around $750 billion.
- They also unveiled a $250 billion expansion of the IMF's reserve currency, referred to as "special drawing rights." This will boost liquidity in the global financial system by expanding member countries' foreign exchange reserves.
- They agreed to selling gold to help poor countries.
- As for market regulation, the G 20 program includes a series of measures aimed at tightening financial regulations by bringing hedge funds and other financial institutions into the global regulatory net.
- They agreed to clamp down on tax havens and promised unspecified sanctions against tax havens and said a blacklist of non-compliant jurisdictions would be issued soon.
- To stimulated trade, G 20 members agreed that they would direct $250 billion for trade finance through credit export agencies in each country.and through international institutions.
- Finally, the leaders agreed to establish a Financial Stability Board -- a forum for regulators to settle on agreed principles.
Key leaders led by President Nicolas Sarkozy of France said there would be a follow up meeting in New York after the next United Nations General Assembly in September.
The IMF estimates that the G 20 countries together have produced fiscal stimulus of 1.8% of their combined economies for 2009 and just 1.3% for 2010.
So now there you have it. World leaders did put aside their national differences and for the first time took a giant step toward solving the current world crisis.
What are your thoughts on the G 20 summit?
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Reader Comments (Page 1 of 1)
4-11-2009 @ 1:03AM
beakehr said...
What a truly sad day in history today will be remembered as. YOU CAN NOT SPEND YOURSELF INTO PROSPERITY !!! The cause of the toxic mortgages was the federal government requiring banks to lend to people that did not qualify. And, if you don't believe this, ask yourself why would a bank loan money that they probably would not get back? So if government created the problem, why do we believe that government will provide the solution? If government had the answer, then why did it take World War II to get us out of the Great Depression? Recall how much FDR did to "stimulate the economy". It didn't work then, it won't work now. These reforms will actually make it that much harder for investers to get good returns. The markets will be unduly constrained. The markets will recover eventually but the pundits will give the credit to these G20 reforms. How sad it is that many then will not know the truth.
4-03-2009 @ 2:18AM
Michael said...
Here's the reason why:
"http://www.youtube.com/watch?v=eAaQNACwaLw"
4-03-2009 @ 4:27AM
arilestariono said...
It's the most important events, to think this stimulus will save the economy, I don't think so.What they need to do change the capitalism economy.
4-04-2009 @ 5:32PM
al coholic said...
Beakehr... I agree that the stimulus is money down a rathole and our children will curse us for crippling them with debt.
However, the loans that are toxic are more the product of mortgage brokers and the people who criminally valued these loans as AAA and peddled them than local bankers.
Our old system of mortgages worked just fine. Local bankers loaned money carefully knowing that they had to live twenty years with these loans. They used appraisers they trusted to value the property accurately. There was no incentive to make people more credit worthy than they were. People were required usually to put 20% down.
It was a good business for banks but when they discovered they could sell these loans to investors and multiply their profits they got greedy. But then mortgage brokers realized they could do the same thing, cut out the banks all hell broke loose. They raped unworthy borrowers with upfront fees and passed these toxic loans on to investors.
And the rest is history!
4-03-2009 @ 8:01AM
Frank said...
why all this spending? preposterous!! just take a page from reagans book. tax cuts for both citizens and business. he endded the recession one year after taking office. its amazing the chinese understand reaganomics and its benfits obamapropmter is clueless. grassfire.org
4-03-2009 @ 1:20PM
Steve said...
This seems like a fairly good idea to me, although I feel that it needs to be tightly regulated. We don't need any more AIG debacles on a global stage. I like the idea of the U.S. matching what other countries will pay, but the "at least match" qualifier scares me ... in my opinion we don't need to be footing the majority of these funds.
Watched a video the other day and it said, "This is the Day the World Came Together to Fight Back."
Couldn't agree more, just make sure Countries don't get taken for a ride with this.
Here's the link: http://www.newsy.com/videos/blueprint_for_recovery/
4-03-2009 @ 7:46PM
winslow said...
Maybe its human nature to always look for loopholes....that's what the bankers did. That's why it's important to have enforced regulations. Thanks to our buddies, the Republicans, this was shoved under the carpet. Thank you Mr Reagan and Bush. If we ever turn to communism for our form of government, we have the current crop of Republicans to thank...the ones that want to bring our system down from being stabilized.