WORLD FINANCIAL MARKETS may be SUSPENDED says Italian PM

[Cecropia]

Berlusconi Says Leaders May Close World's Markets (Update1)

By Steve Scherer

Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ``rewrite the rules of international finance.''

``The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,'' Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis ``can't just be for one country, or even just for Europe, but global.''

The Dow Jones Industrial Average fell as much 8.1 percent in early trading and pared most of those losses after Berlusconi's remarks. The Dow was down 0.5 percent to 8540.52 at 10:10 in New York.

Group of Seven finance ministers and central bankers are meeting in Washington today, and will stay in town for the International Monetary Fund and World Bank meetings this weekend. European Union leaders may gather in Paris on Oct. 12, three days before a scheduled summit in Brussels, Berlusconi said today, while Group of Eight leaders may hold a meeting on the crisis ``in coming days,'' he said.

Berlusconi didn't give any details about what kind of rules leaders were looking to change, except to say that leaders are ``talking about a new Bretton Woods.''

The Bretton Woods Agreements were adopted to rebuild the international economic system after World War II in a hotel in Bretton Woods, New Hampshire. The aim of the agreements was to establish a monetary management system, initially by pegging currencies to gold. The IMF was set up later to help manage the international financial system.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5mpMUORBWM&refer=home

If you were intending on doing something with your investments, do it soon!  You may not have the opportunity next week!

[Cecropia]

Oct. 10, 2008 at 1:51 PM

U.S. Has No Plan to Close Its Financial Markets (Update1)

By Holly Rosenkrantz

Oct. 10 (Bloomberg) -- The U.S. has no plans to close its financial markets, White House spokesman Tony Fratto said.

``There are absolutely no plans or discussions to interfere with the functioning of markets in the United States,'' Fratto said in an e-mailed response to a question.

Fratto was responding to comments today from Italian Prime Minister Silvio Berlusconi, who said that governments may shut financial markets as the credit freeze pummels stocks and threatens a global recession.

Berlusconi later today reversed the comments he made earlier in Naples, saying world leaders are not considering market closures.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aeyZU6z6eZkI&refer=home

I don't know what to believe...

(Original Poster)

[arthistmom]

Oct. 10, 2008 at 2:01 PM

I would take Berlusconi's comments with a grain of salt. Italy may be part of the G7 countries, but he certainly doesn't speak for the group. And it's not the first time he's reversed his comments on anything.

[stefanierios]

Oct. 11, 2008 at 10:19 AM

wouldn't it be pretty stupid to close the markets anyway?  I'm not an economist or a world leader, but I could see how stupid that would be.

[Cecropia]

Oct. 11, 2008 at 1:18 PM

I don't know how they would open positively (the next time they open).  So yeah, it seems stupid, I guess it depends on how desperate they are to stop the daily haemorrhaging.

(Original Poster)