Mixed Reactions From G-20 Summit

Apr 07, 09 Mixed Reactions From G-20 Summit
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While there were no definitive breakthroughs for Mr. Obama, and a few diplomatic faux pas, he was able to coax some concessions from the world leaders at the G-20 summit.  The leaders at the G-20 agreed to bail out developing countries, inject over a trillion dollars into the IMF, and impose stricter regulations over financial firms and countries that act as tax havens.

Mr. Obama did not get agreements from France and Germany to pass stimulus plans in their respective countries.  In addition, there was little concrete action on the great problems confronting the world’s economies, including, toxic assets, expanded stimulus plans, and greater bank regulation.

On issues of statecraft and diplomacy, President Obama’s visit was mostly a resounding success; and he began rebuilding important relationships that were damaged during the previous administration.

Mr. Obama returns to the United States this week to mixed economic news at home.  New polls released today show that Mr. Obama enjoys broad support for his economic agenda and a 60% job approval rating.  The New York Times reports that the credit markets are beginning to show signs of life.

However, many economists are still worried about the severe shortfall in economic output and the prospects for a sluggish recovery.  This shortfall has affected every aspect of our economy.  The longer the economy continues to operate under capacity, the longer it will take for the economy to recover.

Thus, these problems continue to play out with no end in sight.  March’s unemployment numbers rose to 8.5% with an additional 600,000 jobs lost.  It is encouraging that the public is being so patient, but without real results those numbers will easily reverse.

A mix of reticence and optimism seem to dominate the national mood now.  Many economists were hoping for a global approach to the global recession.  For the time being, America will continue do what she has become accustomed to doing in last few years…go it alone.

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