Thursday, October 23, 2008

Financial Market Might Collapse Anytime From Now ?

Lately we can see how our world financial turmoil can really bring huge damages to the whole nations. Not only in America but also in Europe. England has announced that their country were entering into recession with America already confirmed it.

Several nations are still struggle to balance up their financial positions. Recently many countries have made an injection of an undisclosed amount to their financial system, a few hundred billion or maybe trillion in order to help out their country banking system.

Even leaders from around the world were working together to help the world financial turmoil. It is not about one nation but it is about the whole world. Now we can see how strong this financial turmoil can bring until all the nations in the world have to work together.

If all the nations cannot find a solution pertaining to this disaster, the whole world will suffer. Many financial markets in every country might collapse and maybe the national government banks cannot guarantee the saving that we kept inside the bank any more.

Iceland has been at the forefront of the global credit crisis. Recently what was essentially a banking crisis has turned into a national crisis as Iceland’s banks appear too big for the government to rescue.

Leaders from Asia and Europe will gather in Beijing Friday for two days of talks in which French President Nicolas Sarkozy will seek Asian backing for his bid to rebuild the world's financial system. The global economic woes are set to dominate the Asia Europe Meeting (ASEM), a summit of 43 nations held every two years, with the forum offering the first opportunity for Asian countries to discuss the financial crisis as a group.

Sarkozy, whose country holds the rotating presidency of the European Union, has made it clear he will use the event to press Asian nations for support in a dramatic restructuring of the global financial system . Sarkozy said on Tuesday his objective for the forum was "to convince the Asian powers to take part in this (financial) rebuilding."

The French president is particularly looking to China and India, who he wants to join a series of global summits beginning in the United States next month that are likely to see his bolder plans meet resistance from Washington.

India has said it will participate in the summits, and China is expected to announce its decision shortly after giving repeated assurances it wants to contribute to helping the world out of its economic mess. Sarkozy has called for an overhaul of the Bretton Woods system that has governed international finance since the end of World War II, and launch a new system.

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