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Japan joins Europe in recession; G20 fails to cheer
(Agencies)
Updated: 2008-11-17 15:33 Made Things Worse The post-meeting statement from the group of major industrialized and developing countries contained a laundry list of reform pledges aimed at soothing volatile markets and calming consumers' worries.
"This weekend's G20 summit failed to deliver any new stimulus measures to rescue the world economy from the current recession, but at least it avoided the knee-jerk responses (such as rushed regulation) that would have made things worse," Julian Jessop at London-based Capital Economics said in a report. "The real purpose of this summit was to agree a work program for reform of the global financial system. In that respect we would suggest that it has been a success." The G20 statement said that all financial markets, products and participants would be subject to supervision, vowed tougher accounting rules, a review of compensation practices and greater cooperation between national regulators. Even the long-running Doha round of free-trade talks was given a new lease on life. US President-elect Barack Obama sent emissaries to the event, and issued a statement in support of a coordinated response to the global financial crisis.With a $700 billion fund promised to stabilize the battered US financial system, the outgoing Bush administration and its successor must tackle the urgent question of how, or whether, to rescue the nation's "big three" automakers. The Senate is due on Monday to begin debating emergency legislation to provide $25 billion in aid to General Motors Corp, Ford Motor Co and Chrysler LLC. As well, US Treasury Secretary Henry Paulson is due to speak on the economy and markets later on Monday. |
