G7 at its vaguest best

Well i hardly ever find any of these big organizations coming out with definite concrete statements that can give the commonman hope.But this time in the middle of the financial crisis G7 has come up with the most vague statements of all times.Is this what they call action plan?Read on ...

The G-7 agrees today that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. We agree to:

1)Take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.
2)Take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.
3)Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.
4)Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.
5)Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary.


The actions should be taken in ways that protect taxpayers and avoid potentially damaging effects on other countries. We will use macroeconomic policy tools as necessary and appropriate. We strongly support the IMF's critical role in assisting countries affected by this turmoil. We will accelerate full implementation of the Financial Stability Forum recommendations and we are committed to the pressing need for reform of the financial system. We will strengthen further our cooperation and work with others to accomplish this plan.

So this is what they have to dish out at the high table.Or are they too, as clueless as any one of us?

Translating it into laymen terms it looks something like this:

1)We will do something about it.
2)We will also do somehting else about it.
3)We will give banks and other financial institutions money.
4)We will give more money to other guys as well.
5)Keep your fingers crossed and hope for the best.


Hats off to these great men and women...