- Justifiable growing confidence in the sustainibility of global recovery
- Markets showing more confidence in political commitment of Europe to address challenges
- We are at the early stages of trying to build more balanced system inc exchange rates (yer, good luck with that)
- Need to look at measures of external like the current account
- Most important thing to fix in US and globally is constraints on leverage, oversight of derivatives, shadow banking
- Need uniform implementation of such rules across countries
- Mistake in US was to let broad range of institutions into intermediation without capital requirements
- Capital requirements must not be so high as to move risk to periphery of financial system
- Europe has much less tolerance for failure of financial institutions than the US
- Some regulatory authorities in Europe willing to set lower capital requirements than US
- Challenge is to design a system where banks are allowed to fail without excess damage
I always love a good old G20 meet. Just get so much inspired rhetoric
If you haven’t got access to a major newswire, you wouldn’t believe the amount of happy horse-shit which has been spewing forth and which you’ve been missing!!! Lucky you is all I can say.
