The g7 nations are currently meeting in Tokyo to discuss the world economy. The news coming out of the meetings is not too encouraging but at least they say steps are being taken to calm the markets. Below are few quotes and the link to the story.
The problems are going right through all parts of the financial markets and there's not much the G-7 can do about this,'' said Gilles Moec, an economist at Bank of America Corp. in London.`There's a danger that the downturn will become a self-fulfilling prophecy.
Deutsche Bank AG Chief Executive Officer Josef Ackermann said Feb. 7 rating downgrades for bond insurers hurt by the subprime slump ``could be a tsunami-like event.''
Downside risks still persist, which include further deterioration of the U.S. residential housing markets'' and tighter credit conditions, G-7 finance ministers and central bankers said in a statement in Tokyo yesterday. U.S. Treasury Secretary Henry Paulson said ``we should expect continued volatility'' in markets as risk is repriced.
The G-7 agreed that China should do more to defuse global trade tensions by allowing the yuan to climb against the dollar and other currencies.
``We encourage accelerated appreciation of its effective exchange rate,'' the statement said. While the yuan has climbed 4.5 percent against the dollar since the October statement, it's risen just 3 percent against the euro in the same period.
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1 comment:
The g7 is a farce.
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