A meeting of G20 nations concluded Saturday with an ultimatum to the European Union: fix the simmering debt crisis in one week. The “or else” implied in the ultimatum is a complete meltdown of the global economy, worse than that which followed the Lehman collapse.
The meeting of G20 leaders, according to Bloomberg, saw an endorsement of segments of the plan currently being devised by the EU with three main aims: keep Greece from defaulting, recapitalize the banks and halt the contagion currently playing hob with the EU economy. Leaders gave the EU until Oct. 23 to come up with deliver of a completed plan; on that date European leaders will meet in Brussels.
Joachim Fels, London-based chief economist at Morgan Stanley, was reported to say in a note to clients on Sunday that that meeting “has the potential to turn into a positive historic moment. But it could also easily turn into a negative catalyst.”