Credit Crisis News — Pay Attention This Weekend

Over the last few months, I’ve been trying to devote time to the credit crisis and bailout. Unfortunately, the news cycle is often so short that it’s difficult to keep up. Today I was lucky to be able to catch the bailout modification. With the busy times ahead, though, there’s something that needs to be monitored very, very closely:

The Group of 20 nations is prepared to act “urgently” to bolster growth and called on governments to cut interest rates and raise spending as the world’s leading industrialized economies battle the threat of a recession.

“We stand ready to urgently take forward work and actions agreed by our leaders to restore and maintain financial stability and support global growth,” the group said in a statement released yesterday following a meeting in Sao Paulo. “Countries must use all their policy flexibility, consistent with their circumstances, to support sustainable growth.”

Those measures include “monetary and fiscal policy,” it said.

The G20 nations will be at a summit in Washington beginning this Saturday.

Something tells me that nothing good for us “plebes” will come of this. We’ll end up paying dearly for this.

  • TerryP

    They don’t need to increase spending, they need to decrease it. Increasing spending means you are just taking money out of private hands that are already hurting and putting it into a bureaucrats hands to dole out to people and businesses that do not deserve it. We will get out of this situation far faster if we lessen the burden on the taxpayer then increase it. If the gov’t insists on spending our money at least let the companies fail without bailouts and help people on the backend that may lose their jobs to get trained for diffferent jobs. This insulating businesses from their bad decisions just doesn’t work and makes things worse in the future.

    The sad thing is that they will blame this on capitalism, even though they are not allowing capitalism to work. If they allowed capitalism to work these businesses that made bad decisions would be allowed to fail and either be restructured for the better or have someone else take their place if their is still a need. i.e. if GM fails it doesn’t mean cars will not be built. If someone wants a car and is willing to pay for it, someone will build it, either a current company or someone new. By allowing GM or others to go bankrupt you will allow the industry get down to the size and structure that is sustainable instead of a bloated industry that is not allowed to restructure because of union contracts and gov’t meddling.

  • Akston

    Was I asleep when we all decided to abandon this “freedom” thing and simply anoint emperors, kings, and noblemen to proclaim how “we” will all run “our” economies? Didn’t we already have a few millennia of this style of abuse?

    Note to Ben: “Apparently, we can’t keep it.”

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