Posted on November 16th, 2008 in Daily Stock Market / Economic News - The Real Story, Mr Mortgage's Personal Opinions/Research
Boy, the financial media was pumping the G20 meeting this weekend as the beginning to the end to the worlds financial market woes. Many credited the major counter trend stock rally on Thursday to be because of this. When I heard President Bush stand up yesterday with a summary that essentially said nothing, rather was a pep talk, I immediately assumed this group only showed up for the photo-op.
Mish summed up the meeting below better than I could have so here ya go. If you want to read his full write-up, which I urge you do, here is the link.-Best Mr Mortgage
G-20 Top 10 Accomplishments
- 10: President Bush said “There was a common understanding that all of us should promote a pro-growth economic policy.”
- 09: U.K. Prime Minister Gordon Brown said “there is a clear determination on the part of world leaders in every continent to take necessary action to move economies out of this difficult period.”
- 08: The group agreed to not cap executive pay.
- 07: The group sang the praises of low interest rates.
- 06: The group will work on recommendations for enhancing disclosure while hinting it would allow the continuation of mark to fantasy accounting.
- 05: The group called for rating agencies to be registered even though rating agencies in the US are already sponsored by the SEC.
- 04: The group called for the creation of “supervisory colleges” who will not do anything thing but receive outrageous pay for sharing information one can easily find on Bloomberg.
- 03: Argentina, Australia, Brazil, China, India, Indonesia, South Korea, Mexico, Saudi Arabia, South Africa, and Turkey complained “the group of friends” otherwise known as the G-8 would not let them in whenever the G-8 got together to party. The above listed countries are saying to the G-8 “please don’t throw a party without us.”
- 02: The all inclusive group of 20 friends agreed to throw another party in April.
- 01: Drum roll please….. The number one accomplishment of the G20 meeting was to blame hedge funds and the buyers (not sellers) of poison apples for the financial crisis.
Top 5 Things G-20 Ignored
- 05: US Dollar Hegemony.
- 04: Micro-Mismanagement of interest rates by the Fed and Central Bankers.
- 03: Spending run rampant in US authorized by Congress. Same thing in other G-20 countries.
- 02: Of immediate concern is the Collapse of Trade, Letters of Credit, and Baltic Dry Shipping. Please see Yet More Trade Finance Worries (Not for the Fainthearted).
- 01: Fractional Reserve Lending run rampant, leverage, excessive credit creation, and unsound fiat currencies. In other words the G-20 ignored discussing the very cause of the problem we are now facing.