Name those leaders, and the missing one who was reportedly in the loo.
But underneath the pictures lurks international push back that puts Pres. Obama’s steel to the test.
… French President Nicolas Sarkozy and German Chancellor Angela Merkel answered just hours later with a combative appearance of their own, demanding fast and strict international regulation of the world financial system; Mr. Sarkozy called it “nonnegotiable.”
They warned against an empty conclusion of the conference despite many disputes over its direction. Chief among them are French and German calls for fast and far-reaching financial regulation, while the U.S. has stressed stimulus plans and argued for a lighter regulatory approach to some parts of the financial world, particularly hedge funds.
“We do not want results that have no impact in practice,” said Ms. Merkel. “Germany and France will speak with one and the same voice,” Mr. Sarkozy added, citing an on-and-off political alliance that has previously pitted the two countries against the U.S. or the U.K. over Europe’s direction. “As the chancellor rightly said, we demand results,” he said. “Regulation is not simply a word, an empty word… It is a major objective.” [...]
Martin Wolf, who I heard speak last week on “What will replace the American consumer?”, talks to Steve Clemons about the G-20. Any time Wolf is talking it’s worth listening. (Laura Tyson was present and the female financial voice at the symposium.)
But whatever you want to say about the photo ops, the Obamas meeting the Queen, as well as France and German’s “nonnegotiable” bluster, there will be nothing lasting out of the G-20. Yes, they will all commit to just say no to protectionism. However, the world is contracting into nationalistic self-interest for the short-term.
That said, President Obama’s produced quite a star turn, with NBC’s “First Read” calling it a “diplomatic decathlon.” A joint statement and commitment with Russia on nukes; handshakes and more with China; while Israel’s new prime minister rants.
Obama now looks on to NATO, which is where intentions meet manifestations. With the new ask for 10,000 more troops, Obama needs more help in Afghanistan than ever. Big week for the American boss, with what follows the G-20 mattering a whole lot more.
Can’t stay but, couldn’t help but notice the demographics -
28 men
2 women
And, it’s not because men are the most capable – it’s because men control the power – and they don’t like sharing.
OT
DOW over 8,000 for the first time in a long while.
France and Germany would be correct in their calls for tougher regulation. Obama is absolutely wrong on this count. Giethner needs to go period.
Well, iceblinkjm, I disagree emphatically. No American president should invite global interference in U.S. commerce, certainly not regulations.
Both are very much on topic, djjl.
Taylor I agree with you. Global interference in our economic affairs is not welcome. At least not with me.
As for the Sec. Treasury – he is doing better than in the beginning. And I have been vehement about him needing to go. I am rethinking that position and frankly could very well be wrong on this count. I am hoping he stays on a good course.
Even Mitt Romney defended Geithner yesterday.
Romney btw also said the Prez was absolutely correct in taking on the auto industry and he hopes he stays tough with them.
Of course Romney agrees the man is a Republican through and through. They live to bust unions and profit off of those who shower after a day’s work.
IBJ –
You sure have been on a contrarian track the last few days. I haven’t had a chance to comment much but have been reading. What’s up with you?
I am also thrilled that the palace came out with the statement on Michelle’s arm around the Queen. The Queen also had her arm around Michelle. And the statement was very positive, so all the naysayers can just stop and keep their mouths shut.
Hey there djjl. How are you doing. Dow up over 300.
Isn’t it funny how the foreign leaders are coming out with positive words about our new admin. Also P.M. Brown has stated quite positively about the old consensus of Washington is over.
By the way Taylor, is it Sarkozy that is missing in the photo?
Forget it I found out. LOl. Had I clicked on the link I would have read who it was. S**t, I’m getting old.
Betsy says:
02 April 2009 at 12:26 pm
I think you’ll appreciate this Betsy:
http://www.newsvine.com/_news/2009/04/02/2631247-michelle-obama-charms-queen-away-from-protocol
Pretty funny, though.
Kris- I see the bank bailout as nothing more than a corporate coup. We are not being told everything. I was promised change when I voted for Obama and thus far when it comes to the bank bailout all I am seeing is business as usual. He’s simply putting way too much trust in Geithner and his Wall Street cronies.
Betsy- in case your curious http://www.ehow.com/how_11184_greet-queen-england.html
kris says:
02 April 2009 at 12:05 pm
As for the Sec. Treasury – he is doing better than in the beginning. And I have been vehement about him needing to go. I am rethinking that position and frankly could very well be wrong on this count. I am hoping he stays on a good course.
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stop it!!! I almost fell out of my chair
Iceblinkjm says:
02 April 2009 at 12:52 pm
Kris- I see the bank bailout as nothing more than a corporate coup.
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I’m not going to argue against your point, but you do realize the banks are already starting to pay back the TARP money right? They all have to pay the money back, it is a loan not a gift.
Thanks Geo & ibj. I enjoyed reading them. And I see Taylor has a thread up exactly on the issue.
play “caption this photo”
http://images.huffingtonpost.com/gadgets/slideshows/1287/slide_1287_19245_large.jpg
I’m distressed to hear that some people here are against the idea of a global financial regulator. It is the only way to prevent these crises in the future. Policy is distinct from politics, so it’s impossible to get there in one fell swoop. So I would favor an approach where the various country regulators have coordinated regulations for some years, and then over time we move to a global regulation.
Capital moves now at the light of speed. All it takes is a click of a mouse. If Country A requires a bank to have capital reserves of 20%, and Country B requires only 10%, soon there will be no banks in Country A. When Ireland increased its guarantee of bank deposits, the outflows from the U.S. and other countries were immediate and staggering. Congress had to rush to increase the FDIC amount to $250,000. And if they don’t make that fix permanent, the outflows will resume.
Also, how do you create jobs here in the U.S. without a coordinated approach? Macedonia is enticing investors with 0% tax on retained earnings, and a flat personal and corporate tax of 10%. Plus, low worker wages: http://www.investinmacedonia.com This is exactly the kind of tax haven Sarkozy is warning about; unless a stop is put to it, and soon, many businesses will skip town.
As I said, I’m okay with a cautious approach that gets us there in staggered steps. But Sarkozy and Merkel are right: the end-point HAS to be a global regulator. Otherwise, all the promised U.S. regulations will be for naught; the financial companies will simply move. That process already is underway.
“light of speed” LOL