Saturday, October 11, 2008

>Will the G-7 Save the World?

Here is what the G-7 will try to do this weekend:

* Take decisive action and use all available tools to prevent "important" institutions from failing.

* Take steps to unfreeze credit and money markets and ensure that banks and other institutions have broad access to liquidity and funding.

* Ensure that banks and other major financial intermediaries can raise enough capital from public and private sources to re-establish confidence and kick start lending to individuals and businesses.

* Ensure that each country's deposit insurance programs are strong and consistent to assure depositors their money is safe.

* Take action to restart the secondary markets for mortgages and other securitized assets.

If they can do the above things, the crisis should start to end. How quickly it will end and what will be the lingering effects are any one's guess.



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