Sunday, 12 October 2008

G7 to take all necessary steps as global financial system faces meltdown

Not too much came out of the G7 meeting. Bloomberg reports:

Group of Seven finance chiefs, meeting after stocks plunged and as a global recession looms, vowed to prevent the collapse of major banks while failing to unveil new initiatives for thawing credit markets.

"The current situation calls for urgent and exceptional action," the finance ministers and central bankers said in a statement after talks in Washington yesterday. They pledged to "take all necessary steps to unfreeze credit and money markets" without detailing how that would be accomplished.

Instead, we have the IMF warning of a financial meltdown. Reuters reports:

The IMF warned on Saturday that the global financial system was on the brink of meltdown, while France and Germany pushed ahead with a pan-European crisis response to try to prevent the worst global downturn in decades...

"Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," IMF chief Dominique Strauss-Kahn said.

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