World Leaders Afraid of Imminent New Great Depression

WASHINGTON (AP) — The world’s major economic powers are pledging to launch a bold effort to deal with a chronic slowdown in growth and a European debt crisis threatening to push the global economy into another recession. But so far, markets are not buying the new commitments.

U.S. stocks were falling in early trading Friday and those losses followed big declines in Asia and Europe. All of the market turmoil was occurring as finance officials from around the world were in Washington for the annual meetings of the 187-nation International Monetary Fund and its sister lending institution, the World Bank.

In advance of those talks Friday, finance ministers and central bank presidents of the Group of 20 major economies issued a statement late Thursday pledging to do what was necessary to restore financial stability and calm financial markets. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke represented the United States at the discussions.

Source: Associated Press
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