Obama Works His Magic as G20 Leaders Reach Global Agreement

G20 Leaders Seal $1.1 Trillion Global Deal

Sarkozy and Merkel Aboard

Leaders of the world's largest economies have reached an agreement to tackle the global financial crisis with measures worth $1 trillion. To help countries with troubled economies, the International Monetary Fund (IMF) will get extra resources worth up to $750 billion. There will also be sanctions against secretive tax havens and tougher global financial regulation. And the G20 has committed about $250bn to boost global trade.

On behalf of the G20, Prime Minister Gordon Brown announced the following steps:

* Bankers' pay and bonuses will be subject to stricter controls

* A new Financial Stability Board will be set up to work with the IMF to ensure co-operation across borders and provide an early warning mechanism for the financial system

* There will be greater regulation of hedge funds and credit ratings agencies * A common approach to cleaning up banks' toxic assets has been agreed

* The world's poorest countries will receive $100 billion extra aid

* G20 countries are already implementing the biggest economic stimulus "the world has ever seen" - an injection of $5 trillion by the end of next year. The IMF has been one of the biggest beneficiaries of the G20 summit. The resources it has to help troubled economies will be increased to $500 billion.

An overdraft facility will also be increased to $250 billion (in the IMF's currency, so-called Special Drawing Rights) that all members can call upon.

"This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform and with a clear timetable for its delivery," Mr Brown said.

French President Nicolas Sarkozy said that the conclusions of the G20 summit were "more than we could have hoped for". Mr Sarkozy had threatened to walk out of the meeting if it did not yield concrete results.

German Chancellor Angela Merkel also praised the outcome. She said the new measures would give the world a "clearer financial market architecture" and the agreement was "a very, very good, almost historic compromise".

Nice job, Barack!

source: BBC
















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FORECLOSURES: THE OTHER CALIFORNIA WILDFIRE

Less dramatic than the wildfires is the foreclosure tidal wave that's overtaking California.

* Over 700 families lose their home EVERY DAY

* "Nice" neighborhoods where every other house is vacant

* Families walking away from their homes leaving all the furnishings

It's mind boggling...



Contrary to anti-social, right wing propaganda, "sub-prime" loans were not made to help poor people get their first homes. They were created to help new home builders, especially in states like California, Nevada, and Florida, sell out their new home inventory at super-inflated prices.

Home buyers were told by the Fed chairman...by the President...by Fox News...by every idiot financial reporter on TV...that the loans they were taking out were a "good deal." The loans were very simple:

Very little down, very low payments and then, a few years out - when theoretically the property would be worth much more - the monthly payments would rise dramatically. The idea was that long before then the home buyer would have sold out at a handsome profit and moved onto their next home. Free enterprise at work.

It's easy to call these people foolish, but they are really the victims of a scam.

The home builders got paid lavish premiums for their inventory...real estate companies and loan brokers got rich from these sales...the Wall Street banks that packaged these scam loans and sold them throughout the world made hundreds of billions of dollars...and the psychopathic Bush administration got to fund its wars without raising taxes based on the illusion that the economy was good and could afford it.

Now the chickens are coming home to roost.

This is EXACTLY the same scam that Bush Sr. ran in the 1980s using the Savings and Loans real estate fraud bubble to pay for the Contra war and God only knows how many billions he and his fellow crooks siphoned off on the side. Bush Sr. even had the same Fed Chairman Alan Greenspan running the central bank. The only difference is this disaster is 1000x larger.