EU Given a Week to Fix Crisis as G-20 Warns of Global Threat

[Javaman]

http://www.bloomberg.com/news/2011-10-16/eu-given-one-week-to-fix-crisis-as-g-20-warns-world-economy-is-threatened.html

European leaders have one week to settle differences and flesh out a strategy to terminate their sovereign debt crisis as global finance chiefs warn failure to do so would endanger the world economy.

Group of 20 finance ministers and central banks concluded weekend talks in Paris endorsing parts of the emerging plan to avoid a Greek default, bolster banks and curb contagion. They set an Oct. 23 summit of European leaders in Brussels as the deadline for it to be delivered.

“The risk of a recession would be increased dramatically were the Europeans to fail to accomplish goals that they’ve set for themselves,” Canadian Finance Minister Jim Flaherty said after the G-20 meeting, which ended Oct. 15.

Two years to the week since Greece triggered the turmoil by revising its budget math, the inability of policy makers to stamp it out has pushed the Greek government to the edge of default and the European economy close to recession. Stocks and the euro extended last week’s gains after the meeting.

more at link...

[dipsydoodle]

1. Don't hold your breath

Shares fall after Germany's eurozone debt deal warning.

A European share rally has gone into reverse after Germany cautioned that a eurozone debt crisis plan might not be ready by the end of the week.

Indexes had opened higher after a statement from G20 finance ministers and central bankers on Saturday.

They said an EU summit would address the "challenges through a comprehensive plan" when it meets on 23 October.

However, optimism waned after German officials warned against unrealistic expectations.

http://www.bbc.co.uk/news/business-15332247

[leveymg]

2. They could fix this by raising capital gains taxes across the G20. But, that's the one thing they

won't do. They'd rather see default. Selfish idiots limited by their Supply-Side ideology.

[OnlinePoker]

3. Capital Gains are calculated differently in every country.

For instance, in the U.S., I believe you pay capital gains on personal housing when sold. In Canada, we don't (though we also can't claim mortgage interest as an expense on our taxes).

[leveymg]

4. Should be a unified rule with a large net increase in revenues to all countries.