Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: zello who wrote (13882)	4/15/2000 11:14:00 PM
From: zello	Respond to of 35685

Officials Play Down Wall Street Woes German Finance Minister Hans Eichel joined other officials in playing down fears that the stock market tumble could hurt world growth, saying the economic fundamentals in both Europe and the United States were sound. ``There have been some hefty ups and downs on the stock markets but the fundamentals are good in the United States and very good in Europe,' Eichel said after the G7 meeting. 'Markets rise. Markets fall. That's all part of life.' Wall Street's three major stock market indices recorded their biggest ever declines in point terms on Friday amid fears that higher U.S. inflation would force steep interest rate rises in the world's biggest economy. The G7 communique described brighter prospects for the global economy and urged countries to do more to balance lopsided global growth. ``Prospects for expansion in industrial countries and the world economy more generally continued to brighten,' the statement said. ``The underlying fundamentals of the expansion of the major economic areas have strengthened since our last meeting,' the G7 added. ``Nonetheless, continued vigilance and further action are needed to promote a more balanced and therefore more sustainable pattern of growth among our economies.' Nothing To Say About Stock Markets French Finance Minister Laurent Fabius said the finance ministers and central bankers saw no point in going further in response to Wall Streets plunge than stating confidence in their economies. ``The reaction was that there was no specific comment to make because forecasts are so difficult,' Fabius said. ``On the other hand, we all insisted on the fact that the economies of the various countries are good, even excellent, and we decided to leave it at that without envisaging anything specific' regarding the stock markets. But mirroring concerns expressed by the group at its last meeting in Tokyo in January, the G7 said Japan's economy had yet to achieve a ``secure recovery.' It noted that Japanese authorities remained committed to providing sufficient liquidity until deflationary concerns in the world's number two economy subside. But the G7 urged Tokyo once again to step up the pace of structural reform to boost domestic demand. U.S. officials, worried about a ballooning U.S. trade deficit, have complained for years that Japan and Europe were not doing enough to boost their domestic economies and were relying too heavily on exporting to a booming U.S. economy. Regarding the euro zone, the G7 said growth had improved and that inflation was low. But it added Europe needed to step up the pace of structural reforms to foster growth. In the United States and Canada, the G7 noted that growth remained ``very strong' and ``inflation well contained,' urging both countries to keep fiscal policies tight and monetary policies prudent. It also called for Americans to save more. The statement also said that emerging market economies were well on their way to recovery from Asia's financial crisis of 1997-99. ``However, it will be critical for countries to maintain the momentum of reform and continue to work to address potential underlying vulnerabilities,' the statement said. The group also said it looked forward to hearing more about Russia's plans to reform its ailing economy. ``The Russian economy has strengthened during the past year, offering a unique opportunity to move forward with reform by utilizing its high economic potential,' it said. ``However, fundamental economic reforms will be essential if this positive trend is to be sustained.'