Tuesday, 7 April 2009

Lies Lies Lies ... Check This Posting by Felix Salmon on the G-20 Package

We were discussing this subject of the crisis and the role of the G-20 with friends over rum and vodka last night at a Bogotá bar. We were asking whether is true this thing about the market rally and all that. It's a bear market rally. I am not that convinced that the rally will prevail, confidence will be fixed and signs of a global recovery will be seen this year (my most optimistic scenario sees it coming by the end of the second quarter of 2010.) My friends, though, are just exhilarated by the idea of Barack Obama fixing the markets and overhauling the culture of greed in America -- making America more human. They keep dreaming. I think they were drunk, not me.

Check this blog posting by Felix Salmon -- We all saw the show of these G-20 presidents gathered altogether in London, trying to show they are acting to avert the mistakes that led to failed coordination policies of the Big Three back in the 1930s. The collapse of such scheme back then led to the worsening of the global depression. I hated the meeting, I have to say: seeing U.S. President Barack Obama kissass-ing Brazil's Luiz Inacio Lula da Silva was stupid. Lula, in turn, could only say stupid things such as the crisis was triggered by the actions of ''white people with blue eyes.´´ Jesus! It was just that, show and cameras and unfortunate statements. They announced trillions of dollars in aid for the next five years and all that. But, what of all that is new money?

Felix Salmon says: ''Net-net I’m inclined to believe that any hard-and-fast statement about how much new money there really is in the G20 package is almost certain to be false: the fact is that no one knows for sure, and won’t for some time yet.´´

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