Anyway the upcoming G-20 meeting on the 13th will come out with some announcements which might help to mark the low of this bigger wave. The world bank has no officially claimed the first negative global growth year in over 60 years. Eventually as I stated in an earlier blog we are already in worse shape than the 1929 depression. Throwing the combines forces into the mix sounds nice but in real terms it never can work as all countries do also compete for markets and profit share so we have a to severe conflict of interest to have it work in reality.
Short term though it may look as they have a grip on the situation but they do not as banks are bankrupt and the government has lost a lot of firepower saving those bankers butts and after all its a black whole anyway as losses are double digit trillions.
World Coordinated Stimulus Needed: White House
World leaders need to pump more money into the economy in a coordinated effort to boost demand and pull the world out of recession, the White House's chief economic adviser said on Monday.
In an interview with the Financial Times, National Economic Council Director Larry Summers said kickstarting growth should take precedence over ironing out global imbalances.
"The old global imbalances agenda was more demand in China, less demand in America. Nobody thinks that is the right agenda now," Summers said. "There's no place that should be reducing its contribution to global demand right now. It is really the universal demand agenda."
Summer's comments, ahead of next month's G20 summit in London, suggest the U.S. administration wants all industrialised nations to pull together to engineer a demand-led recovery.
That will be music to the ears of British Prime Minister Gordon Brown who has trumpeted internationally-coordinated stimulus measures as the best way to tackle the downturn.
"The right macro-economic focus for the G20 is on global demand and the world needs more global demand," said Summers.