Friday, October 10, 2008

Where Are Our Leaders?

Paul Krugman points us to this disturbing quote from a Bloomberg article:
Finance ministers and central bankers from the Group of Seven nations signaled reluctance to adopt a coordinated effort to shore up banks, risking a deeper crisis of confidence after this week's crash in global stock markets.
Are you kidding me? This is the worst global financial crisis since the 1930s and our leaders cannot agree on a coordinated policy effort? The last time there was a financial crisis this pronoucned and global leaders failed to come together the Great Depression emerged leading to the rise of Hitler. We are very fortunate that the IMF/World Bank meetings are taking place now, bringing all the financial leaders of the world together in one place. If nothing meaningful comes out of these meetings than we can also blame a crisis of leadership for the financial crisis. I was really hopeful after Wednesday's coordinated interest rate cuts by central bankers--even though it appeared to inspire more fear than confidence--that there would be more coordinated policy actions across the globe to follow. Don't let me down G7!

Update: See Paul Krugman's column.

Update II: The G7 release their plan of action. Here is more from Bloomberg. Paul Krugman is not impressed.

No comments:

Post a Comment