G7 ready to give us a global fix Monday with the unusual and for the first time ever intervention/consultation of private banks, e.g., Citi, Mitsuho, etc.
Or is a big 'fix' really on the way?
My take;
Remember that G7 comprises the finance ministers of France, Germany, Italy, Japan, the UK and the US.
Except for Japan, no heavy holders of dollar denominated reserves. No Chinese, Russians or Arabs invited.
The invitation list says a lot about the remedy. Not inviting the Arabs nor the Chinese but asking for advice and consultation from big Western plus Japanese banks means that there is no 'fix' to be issued.
The PR says something about ways about implementing transparency in the global financial system. The subtext I hear is this: Why haven't we heard from the Japanese banks in any meaningful way with regard to subprime and credit?
A meeting to implement transparency standards with respect to sellers of credit instruments [after the horses, cows, pigs, etc., have left the barn] and the holders, i.e., the Japanese, who have not been heard from.
Just a guess, pay your money, take your chances. |
