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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (49875)	5/10/2009 4:49:48 AM
From: elmatador	Respond to of 217900

World economy 'free fall' ends: Nobel laureate said the "sense of free fall" is over in the world economic crisis, while urging further efforts by rich countries to speed recovery. World economy 'free fall' ends: Nobel laureate ROME (AFP) — Nobel economics laureate Joseph Stiglitz said Thursday the "sense of free fall" is over in the world economic crisis, while urging further efforts by rich countries to speed recovery. "There's no longer the sense of free fall," Stiglitz told reporters in Rome. "The rate of decline has slowed, but that should not be confused with recovery," Stiglitz said after a two-day meeting of the so-called "Shadow GN" economists. The group of experts "with no commitments other than that of being citizens of the world" met to compile recommendations for the Group of Eight rich countries that will hold their annual summit in Italy in July. The GN, which met for the first time in New York in February, also seeks to engage the Group of 20, which joins the G8 with emerging economies including China, India and Brazil. The initiative is led by Stiglitz and French economist Jean-Paul Fitoussi. "While it may be the case that the worst consequences of the freezing of credit are easing, it would be wrong to say that the global crisis is over," Stiglitz said, urging "continued efforts by governments to stimulate economies and revive the financial system." Arguing that poor countries have been among the hardest hit by the global financial crisis, "even those that had good economic policies," Stiglitz said "advanced countries should provide substantially more assistance." He said US Federal Reserve chief Ben Bernanke's "forecast records have not been impressive," while adding that "as a public official one of his jobs is to keep up optimism." Stiglitz, who won the Nobel prize for economics in 2001, blamed lax regulatory policy for creating conditions in which low-cost capital was squandered instead of being "used in ways that would have made the economy more productive." "Having cheap capital should be a good thing, but instead of using it to the common good they exploited the poorest people" through junk mortgages, said the former chief economist for the World Bank.