Tweet The G-7 Met, The G-7 Disappointed (at least me)
I actually moved some cash in my 401-K from a money market fund into stocks yesterday, under the theory that there was no way, no possible way, that with the turmoil in the international markets and the continued lack of liquidity in the credit markets, that they would come out with anything except a plan so bold that the markets couldn't help but love it.
I waited with baited breath for the press conference by Treasury Secretary Paulson last night, to hear about the plan and how the G-7 was riding into town and saving the markets from something potentially not seen since the 1930's.
You know in Charlie Brown cartoons when the adults speak and all the children hear is blah, blah, blah, blah. That is exactly what I heard last night. A lot about frameworks and platitudes about doing whatever it takes.
The Details (or lack there of)
There were some good "ideas" presented in terms of recapitalizing the banks, increasing deposit insurance and the valuing of the toxic securities to be bought from the banks.
What I didn't hear, and what left me shaking my head, actually upset and to be honest a little nervous about next week, is any plan to set up some type of guarantee of the lending between banks. The plan for what it is that is going to be done to unfreeze the credit markets and get banks lending again to you and I, small businesses, etc. The plan for what will get the LIBOR rate from its' current level down to "normal" levels.
Hopefully I was tired or distracted and just missed that part in Paulson's speech, but I don't think so.
Could be a very long week coming up, but maybe I missed something.