Friday, April 3, 2009

And Now Some Good News...

This was our last chance. So warned George Soros and Ambrose Evans-Pritchard in rather apocalyptic exhortations to world leaders on the eve of the G20 Summit. According to Soros
If the G20 is nothing but a talking shop then he thinks we are heading for meltdown. “That could push the world into depression. It’s really a make-or-break occasion. That’s why it’s so important.” The chances of a depression are, he says, “quite high” – even if that is averted, the recession will last a long time. “Look, we are not going back to where we came from. In that sense it’s going to last for ever."
With that in mind, the happy news that the G20 actually produced meaningful action on increased funding for the IMF and trade credits, as well as a commitment to crack down on tax havens is especially heartening. World leaders woke up and realized that letting emerging markets go bust - particularly in Eastern Europe - would likely lead to a new round of financial contagion in core countries. There is hope we can avoid a global lost decade.

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