Sunday, October 19, 2008

Potential Financial Summit Already Lurching

President Bush recently met with French President Nicolas Sarkozy and European Union President Jose Manuel Barroso.

They discussed a potential summit to address the financial crises spreading throughout the world.

As I predicted, the U.S. is already refusing to commit to any significant action on the international level.

First, no date has been set for this summit.

But this could just be because of the looming revamping of the U.S. government. No matter which presidential candidate wins the upcoming election, they will need time to prepare for such a meeting.

Secondly and more telling, Bush is arguing that no action should be taken that hampers the 'the commitment to free enterprise, free markets and free trade.”

I think it can be argued that the markets have been too free lately. Allowing large scale speculation in land, housing, commodities, and oil has led to disastrous consequences that are just now playing out.

The rest of the world is not amused with Bush's lack of leadership on this issue.

France's Sarkozy views U.S. participation in an international scheme as necessary.

"Since the crisis started in New York, maybe we can find the solution in New York," he said. "This is a worldwide crisis, and therefore we must find a worldwide solution."

What does this mean to the readers?

I think the media will focus lots of attention on this proposed summit.

Some type of joint statement of purpose will come out of the summit.

The statement will be generic, with not a lot of details on any real action. No participant will be required to do anything specific, but each will pledge to be more vigilant on policing unregulated behavior that could lead to another financial crises.

Readers should expect no real legislative action on any proposals that come from such a summit.

Instead, readers may see executive orders requiring regulatory agencies to consider the statements expressed from the summit.

That's my cynical take on how this summit is shaping up.

Of course, results from the upcoming U.S. presidential election may make it necessary to revisit this prediction.