Financial uncertainties continue to spread
Amanda Roth
Issue date: 11/18/08 Section: News
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This year has been full of uncertain financial times.
This was the topic of discussion when Professor Bob Diamond, from the Brock Economics Department, guest-lectured in the Political Science Department on Nov. 13 at 2 p.m.
Approximately 20 people attended the lecture, entitled "Living in Interesting Times: Financial Bubbles, Credit Crunches and Bailouts".
Diamond discussed the sequence of events that led to the current world financial situation, also mentioning that the sizes of the bailouts are not exactly unprecedented in terms of numbers; what is unprecedented is that the crisis began, and spread from, the United States.
Also, after it spread, it affected an unprecedented number of economies all over the world.
Two days later, on Nov. 15, in Washington D.C., leaders from around the world gathered for a summit meeting concerning the global financial crisis.
With the meeting nicknamed Bretton Woods II, the summit was surrounded by echoes of political history in the making.
Present at this meeting were a 'Group of 20', which included members of the G7 and other key players invited by these members.
The decision to do this was made by George W. Bush, as the administration sees the crisis as a matter that demands global cooperation.
French President, Nicolas Sarkozy, proposed to "change the rules of the game" last week, after a meeting of European leaders.
Chinese President, Hu Jintao, attended the meeting in Washington with a delegation of 100 people, and arrived with nearly $2 trillion in foreign exchange reserves.
This is money that the government in Beijing could lend to countries in financial distress.
British Prime Minister, Gordon Brown, came to Washington from New York, where he criticized the proposed bailout of American car companies on Nov. 14 in a speech.
President Bush attended the meeting to host his fellow nations in Washington.
For Bush, this financial crisis is one more unfortunate blow to an already stretched out administration, especially after years at war and the current weakening economy.
The countries in attendance at the summit meeting in Washington were Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Spain, Turkey and the US.
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