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WORLD> World Financial Crisis
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Bush plans to host world powers at economic summit
(Agencies)
Updated: 2008-10-19 09:00 Since Oct. 9, 2007, when the Dow topped 14,000, investors have lost $8.3 trillion from pension funds, college savings plans, 401(k)s and other investments. Congress gave Bush a $700 billion plan to buy bad assets from banks and other institutions to shore up the financial industry. The crisis has rocked financial markets across the world, prompting fears of a worldwide recession. "We're dealing with a significant problem," Bush said, calling for patience to let rescue measures take effect. " But the American people and our friends around the world can know that we have confidence that the measures will work." Barroso said it was time for the entire international financial system to be reformed. "We need a new global financial order," he said. "The European Union and the US, we can make a difference together." Sarkozy also stressed the urgency of what he said was a "worldwide crisis" that demands a "worldwide solution." He said he agreed with Bush's view that reforms not challenge the foundations of market economics. But he added: "We cannot continue along the same lines because the same problems will trigger the same disasters." He said hedge funds and tax havens cannot continue to operate as they have in the past; financial institutions cannot continue without supervisory control. "This is no longer acceptable," Sarkozy said. "This is no longer possible. ... This sort of capitalism is a betrayal of the sort of capitalism we believe in." |
