Global Financial Troubles Worsen. Meeting Planned in Washington.

Global Financial Troubles Worsen. Meeting Planned in Washington.


The global economic troubles worsened today as major markets around the world have fallen 6-10%. The situation has deteriorated to the point that the world’s financial ministers and central bankers will meet in Washington this weekend in an attempt to coordinate a global response.

Unfortunately, no one really knows what will calm global markets. On the heels of the United States’ $700 billion bailout package, countries from Japan to Britain to China to Iceland have made serious steps to shore up their nation’s banking system by infusing money into the system and/or cutting rates to encourage lending. So far, stock markets have shrugged off such maneuvers and continue to fall.

I keep hearing references to the Great Depression. And while I am nervous about the current situation, I also know our nation and most other nations are taking steps never even considered in 1929 and the early 1930’s. We have likely already reached or will soon reach the natural bottom of this market correction – any greater declines will be panic based. So, the key is to stop the panic before it snowballs.

Hopefully, this weekend’s meeting in Washington will come up with ways to do just that.

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  • Thingumbobesq.

    Prediction from Thingumbobesquadamus
    Today, Messer George Bush will regale the nation with this needful admonition: “Remember, my fellow Americans prosperity is just around the corner.” … or words to that effect.

  • gerryf

    Why are the world markets in chaos–I’ll give you one big reason: the idiots who caused this mess are still running the show.

    We have hundreds/thousands of these financial “elites” running around who created all these problems and the tax payers have bailed most of them out, but we didn’t kick the idiots out.

    We are essentially flushing all this bailout money into the same financial toilet. Their is no accountability.

    The financial system is a inbred cesspool with board members and ceos sitting on each others boards, no one resigning, overseeing themselves into a titanic whirlpool of fiscal sewage.

    For crying out loud, Richard Fuld, the ceo who drove Lehman Brothers into the ground was on the board of the Federal Reserve Bank of New York. Our Treasury Secretary was CEO of Goldman Sachs and while there it looks like he was influential with two U.S. Securities and Exchange Commission chairmen in receiving restraint in the commission’s exercise of oversight requirements.

    Boardmembers are CEOs of other companies, CEOs are board members of other companies. Credit Swaps. Poor investment decisions. Book cooking. Bailing them out gives the executives a reason to go party at exclusive resorts.

    Why are we bailing this bloated mess out when the same captains of the financial industry are still driving the boats aground?

    And you ask why are the people who are watching this mess panicking?

    The question is why isn’t everyone?