What is happening in the global economy right now is making many people nervous. Uncertainty prevails with slumped global markets' on rising fears that the global economy is sinking into a deep recession. The suffering of the global economy' continued with weak consumer spending, tight credit conditions, falling wages, slumping home prices and rising job losses.
Experts initially started giving stock tips, many started to consider buying at some of these low prices as the stocks keep getting cheaper, but people remain little nervous as they feel it's not bottomed out yet.
However, the concept exists' if “too many” traders are bullish, it is generally considered to be a bearish sign since the majority of investors are wrong at the extremes. The challenge, is to know when “too many” is actually too many.
If you remember my article " Financial Markets after Bailout. Wrong basics or wrong…?" you must read in the very first lines, as I mentioned my concern on the basic economic models being followed globally and the need to review them in the present situation. Now again this concern seems to voiced out but this time it's by World Leaders as ' World leaders joined by aides to the new U.S. president-elect would gather before year's end in New York and attempt to forge a new vision for the global economy, as reported by the Friday's Washingtonpost. French President 'Nicolas Sarkozy' has teamed up with British Prime Minister Gordon Brown to press for such a summit, and the French leader travels to Camp David this weekend to lobby President Bush to sign on.
Also the 'Reuters poll of 41 economists, published after a survey of G7 countries on Thursday showed most were in recession, found global growth slowing to 3.7 percent in 2008, and then to 3.0 percent in 2009, from around five percent last year.
Going forward, French President move for a summit on new economic vision not going to put significant effect in the near term because in the present scenario any talks on the possible policy change will trigger the critical uproar among the political circles. No doubt the move will help to evaluate and determine the systematic plans in the years to come, this happens only after the present crisis situation stabilized.
The economic loopholes exist and required to be highlighted by revelation and forwarding it openly for the general debate, but what is happening is contrary. Now amid speculations or guesses and with nobody wanted to take the blame, all the efforts by the Governments to control the crisis situation assumed nervous moves without any target or direction. That's how the Government initiatives missed out their very basic objectives.
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