World Leaders Vow Joint Push to Aid Economy

New York Times:
"WASHINGTON — Facing the gravest economic crisis in decades, the leaders of 20 countries agreed Saturday to work together to revive their economies, but they put off thornier decisions about how to overhaul financial regulations until next year, providing a serious early challenge for the Obama administration."
"Despite broad support for economic stimulus, the leaders were not able to agree on a coordinated global effort. "

Still, for all the talk of action and history-making change, some experts said the outcome was disappointing.

“This is plain-vanilla stuff they could have agreed on without holding a meeting,” said Simon Johnson, an economist at the Massachusetts Institute of Technology and a former chief economist of the International Monetary Fund. “What’s new, except that this is the G-20 instead of the G-7?”

“Anyone looking for the G-20 to issue a mea culpa on the global financial crisis will be sadly disappointed,” said Kenneth S. Rogoff, a professor of economics at Harvard. The leaders “curiously downplay the huge culpability of the political leadership in the U.S. and Europe.”
------------------------------------------
U.S. Shifts Focus in Credit Bailout to the Consumer
New York Times (12th November)
"WASHINGTON — The Treasury Department on Wednesday officially abandoned the original strategy behind its $700 billion effort to rescue the financial system..."
------------------------------------------------

'Dynamic provisioning' (BBC)

"Spain's system has attracted a lot of interest.

In effect, it requires banks to build up a financial cushion in the good years which can help them absorb losses in the bad times when increasing numbers of borrowers fail to repay.

The basic principle is not exactly financial rocket science, although the name it has - dynamic provisioning - makes sound as though it is."

------------------------------------------------
Gordon Brown is planning a ‘Christmas bonus’ for taxpayers in an attempt to kick-start the flagging economy.
Daily Mail

"The Prime Minister, who is attending the G20 Summit of the world’s leading economic powers, is keen to present himself as the central figure in international efforts to deal with the credit crunch.

"Although he refused to put a figure on the size of the handout – which is likely to be delivered in tax credits or winter fuel payments – he acknowledged ‘a general view was emerging’ that the Government should plough up to two per cent of economic output into measures to combat the slump.

That would mean spending up to £30billion.."

But these efforts have been driven by tensions. At home, the Treasury has counselled caution about ramping up borrowing to pay for a spending boom, while abroad the summit has revealed governments are reluctant to respond to Mr Brown’s call to co-ordinate his tax cuts.

Some Tories claimed last night that the handouts could mean higher taxes for middle-class families later on."