Results tagged “globaleconomy”

Today, on the eve of the G8 meeting in Italy, Pope Benedict issued an encyclical letter discussing the economic crisis, specifically noting the problems with greed. He wrote, "Profit is useful if it serves as a means toward an end. Once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty."

       

World leaders convening for the G20 summit agreed they will "do more" (in the worlds of British Prime Minister Gordon Brown) to help bolster their economics and the global economy as a whole--not that they had any other choice. However, the NY Times reports, "they put off thornier decisions about how to overhaul financial regulations until next year, providing a serious early challenge for the Obama administration."

What bailout bill that was signed into law over the weekend? Stock markets around the world fell: Japan was down 4%, China 5%, the FTSE 5%. Iceland and Russia suspended trading after falling 14%. The futures index in NY is down, and it's believed the Dow will open down 200 points.

President Bush addressed the United Nations General Assembly today. While he covered terrorism and Russia's invasion of Georgia, his main goal was to reassure the world that the U.S. was working to fix its economy. Some of his remarks:

Our nations must renew our commitment to open economies, and stand firm against economic isolationism. These objectives are being tested by turbulence in the global financial markets. Our economies are more closely connected than ever before, and I know that many of you here are watching how the United States government will address the problems in our financial system.

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After an ugly Monday in global financial markets while the U.S. markets were closed and Asian stock markets plunging today, the Federal Reserve lowered the interest rate by 0.75% in an "emergency move for the first time since 2001." From the Fed's press release:

The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth. While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households. Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets...

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