Global Economic Crisis

Recently the U.S. treasury secretary T. Geithner urged his foreign counterparts from the G-20 nations in a very vague and blunt terms that the G20 nations should not expect the Americans to buy the exports that the rest of the world throws upon them. This was given as a warning to the finance ministers in a letter in Busan, South Korea who had gathered there for the emerging economies talks.
The letter mentioned that the slow economic growth coupled with higher sense of savings among the domestic population will lead to this shortfall in consumption of the exported goods. Along with this he also expressed his worry over the decreased consumption in Europe and Japan and the need for a more flexible rate policy in china. He has also urged the G20 nations to plan and reorganize balance to their financial budgets which will be beneficial in the long term.
Although the debt ridden euro economy has posted a slight growth in the first 3 months due to rebuilding of the inventories, the weight of the stock market fall is beginning to show on the faces of the financial leaders and the admittance of the fact that the global economy is still fragile.

This entry was posted on Tuesday, June 8th, 2010 at 9:59 pm and is filed under Stock Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.