G-7 Frets Central Banks Can't Avoid Peril Without Helping Hand

[flashl]

Feb. 4 (Bloomberg) -- Central bankers Ben S. Bernanke, Mervyn King and Jean-Claude Trichet need all the help they can get to fend off a global recession and restore confidence to financial markets.

Government officials from the world's wealthiest nations meet in Tokyo this week under pressure to devise responses that go beyond monetary policy amid mounting evidence, six months after credit markets seized up, that central banks can't solve the world's economic woes by themselves.

...

Break With Tradition

More fiscal easing in the U.S. may be necessary, and other governments should follow suit, Dominique Strauss-Kahn, managing director of the International Monetary Fund, told the World Economic Forum in Davos, Switzerland, Jan. 26, in a break with the fund's traditional push for smaller budgets.

Such a shift at the IMF is "mildly historic" and "an indication of the gravity of the situation we face," says former U.S. Treasury Secretary Lawrence Summers.

"We hate the idea of extensive government intervention, but it's going to have to come," Connolly says. "The crisis is real and huge."

Bloomberg

[Birthmark]

1. Yup.

They're always for the free market...until the free market collapses. Then they want the "nanny state" to make everything all right...so they can go back and do the same stupid thing again.

[Warren Stupidity]

2. Yes of course when we get in trouble the neoliberal recipe

forced onto lesser nations: deep cuts in social services, wholesale privatization of public assets, deregulation of foreign acquisitions and profit extraction - the Chicago School recipe that is the standard set of demands insisted on, do not apply. Not only have we committed great evil in this world under the banner of free market fundamentalism, but we are complete hypocites about it.

[Angela Shelley]

3. That´s interesting, flashl, Thanks!

After reading several informative sites in the internet, I had come to the conclusion that institutions like the Fed and the IMF are the cause of all of the financial problems ... now they are saying that they need help.

Sounds like a trick to me, they are washing their hands of the crime, before the blood flows.