G20 summit fails to allay world recession fears

[arikara]

Source: Guardian

The threat of a world recession drew near last night after the G20 summit in Cannes ended in ominous disarray. Leaders were unable to agree upon a boost to the International Monetary Fund (IMF) to help distressed countries, while debt-ridden Italy, now seen as the epicentre of the euro crisis, was forced to put its austerity programme under the fund's control.

UK hopes that the Germans would relent and allow the European Central Bank to become the lender of last resort for the euro were also dashed.

In a day of unremitting gloom, and yet more market turbulence, the Greek government also stood on the precipice of collapse, risking an uncontrolled default, as the government of George Papandreou faced a late-night confidence vote in parliament. Prime Minister Papandreou was forced to cancel plans for a referendum on the euro.

Read more: http://www.guardian.co.uk/world/2011/nov/04/g20-summit-fails-eurozone-recession

[county worker]

1. Some how the austerity programs never seem to effect those who benefited from all the borrowing.

We make the 1% whole on the backs of the 99% each and every time. It gets to the point were a little more austerity isn't noticed because when you have nothing you have nothing to lose.

That's why the Greeks would vote to tell the IMF to go f..k itself.

We need a world summit if all the occupiers and decide what to do about the world recession.

I would start by each country defaulting on it debt or a forgiveness of debt. The 1% will still survive only with a bit fewer assets.

[dipsydoodle]

2. It will be just fine if Greece defaults

and goes back to the Drachma.

Their level of tourism which is one of Greece's main forms of income to rocket and help see them through having a weak currency.

Doing so will also end the Sovereign Fund CDS fiasco for good, costing US financial companies in the order of half a trillion dollars , assuming they cough up, whilst at the same time screwimg the US from whence a lot of problems came from in the first place partly due to the absense of financial regulation.

Sounds just hunky dory to me - I'll vote for that.

[backtomn]

3. So what if your Greek hotel reneges??

What if your hotel or transportation in Greece defaults?? Not exactly a great reason to visit the countries. If they leave the EU, if will have implications.......BIG implications.

[plumbob]

4. There was no EU a lot longer than there has been one.

They'll be fine.

[dipsydoodle]

5. What ?

I can only assume you've never booked a holiday from the UK to Greece mainland or one of its many islands. When you've done so then maybe get back to me.

The biggest immediate implication will be on Italy - followed by Portugal, Spain and Ireland. That's partly because in the absense of CDSs they may not be able to sell bonds quite so easily.

[county worker]

6. We are talking about adding more austerity on the backs of those who

had their taxes raised and jobs lost and services cut. Screw hotel prices!

[dipsydoodle]

8. Increased levels of tourism

which in effect is their highest export will provide jobs. Their taxes on property and vat were raised to compensate for their reluctance to pay income tax.

I don't think you have any clue whatsoever about the situation in Greece. When they default they will be unable to sell bonds - where are they going to get funds from other than from taxes ?

[county worker]

10. They'll sell bonds after a default.

This isn't the end of the world. And you don't know what I know and don't!

[davidwparker]

7. +1

[Name removed]

11. Deleted message

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[JNelson6563]

9. Who didn't see that coming?

Surely no one expected this gathering to allay fears. The 99% know (or at least most of us) that if you want to solve real world economic problems you don't appoint a bunch of people who are completely out of touch with the real world to do it.

Julie

[truthisfreedom]

12. SO what should I short?

I mean, it's all coming down. So what is the best short?