24 November 2008

Financial crisis can be overcome in 18 months: APEC

This article is excerpted from the 23 November 2008 edition of “globeandmail.com”.

The financial crisis threatening to plunge the world into recession can be overcome by mid-2010, Pacific Rim leaders said Sunday as they wrapped up a two-day summit.

“We are convinced that we can overcome this crisis in a period of 18 months,” the 21 leaders said. “We have already taken urgent and extraordinary steps to stabilize our financial sectors and strengthen economic growth.”…

Given the unpredictability of current market gyrations, some in Lima where skeptical about the stated confidence the leaders had in an 18-month solution. A senior staffer of one country's delegation burst into laughter when pressed for details about how the leaders knew they could accomplish it….

They endorsed a blueprint worked out at a summit of top economies in Washington, including a pledge to resist domestic pressures to protect industries, but stopped short of major new proposals to ward off a global recession….