The G20 leaders agreed to a historic move today. They agreed to a $1 Trillion boost to the economy! That is a lot of money. I wonder what that would actually look like in $100 bills in person. That would be fun to play with wouldn’t it. What is the money for you say? It is for banks to use as they see fit…just kidding. It is for struggling economies and is intended to help improve the world economy and trade.
Even though this agreement is historic it is not as historic as it could have been. There were a number of things that could not be agreed upon and therefore were left out of the package. The leaders failed to agree upon a global fiscal stimulus package and the regulation that was to be enforced on banks has been watered down a little. The package was to include strict bank regulation including bonus packages and executive compensation, but an agreement could not be reached on this. I have a feeling that this will come up again in future talks.
The G20 also agreed that there needs to be strict regulation on Hedge Funds! You know – the funds that actually make money when stock prices go down. That’s not a recipe for disaster is it? Anyway – these funds will be seeing stricter regulation in the near future.
And for the last note for today – How many different outfits is Michelle Obama going to wear while she is in London? I have heard that everything she has worn while she has been over in London has sold out immediately. She is the one with the power!
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Have a happy Friday!
Friday, April 3, 2009
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2 comments:
Would love to see some regulations on Hedge Funds...we'll see what happens.
$1T over 19 countries isn't really THAT much. A lot of money for sure, but when our own stimulas packake was $787B, its not a lot. Spread that over 20 countries and its roughly $50B each. the US economy produces roughly $14 trillion worth of goods and services every year. So with companies like AIG reporting a loss of $61.7B in just the forth quarter alone, how much of an impact can we really expect to see?
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