Central Bankers looking increasingly impotent.....

[marmar]

(Bloomberg) Group of Seven nations sought to head off a collapse in global investor confidence after the U.S. sovereign-rating downgrade and a sell-off in Italian and Spanish debt intensified threats to the world economic recovery.

The G-7 will take “all necessary measures to support financial stability and growth,” the nation’s finance ministers and central bankers said in a statement today. Members agreed to inject liquidity and act against disorderly currency moves if necessary.

The European Central Bank indicated separately that it will buy Italian and Spanish bonds and Japan signaled further dollar purchases in a sign of concern that prices are becoming unhooked from fundamentals. Stocks extended last week’s decline, the biggest since 2008, adding to risks for a global rebound already burdened by European fiscal cuts and elevated U.S. unemployment.

“The G-7 just gave a raspberry to S&P and basically said its analysis is irrelevant,” said Diane Swonk, chief economist at Mesirow Financial Inc. in Chicago. “It is unclear whether the promise of coordinated efforts to provide liquidity will be enough to avert a panic.” ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-07/g-7-vows-to-take-all-necessary-measures-to-stabilze-economies-markets.html

[ixion]

1. Hear that? That is the sound...

of inevitability.

[Ruby the Liberal]

2. And karnack says "irrelevancy"

Question: How will they deflect attention from S&P calling out the GOP for acting like 3 year olds?

[fivepennies]

3. Watch closely.

Don't take your eyes off their hands or you might miss the next magic trick.

Impotent they are not.

[cloudbase]

4. The emperor has no clothes. n/t