Photo: Flickr/Koroly Lorenty
Art Cashin had some choice words regarding this weekend’s G20 meeting in Mexico City. And he had a colleague to say them for him. From this morning’s Cashin’s Comments:The Weekend G20 Meeting – I think the best and most succinct assessment of the session may have come from UBS’s London-based sage, Paul Donovan. He simply said:
The G20 was its normal complete waste of time and airfares. The group agreed to do nothing about anything, but did offer up some nice platitudes about how well the world economy seemed to be doing. Many might believe that markets could work that out for themselves.
More than just a waste of time, it may have also been a setback to the Europe’s debt crisis. From the Comments:
The wasted event, nonetheless, is seen as a potential setback to the cooperation needed to keep the bailouts moving and to keep the markets reassured. Here’s a take from David Powell over at Bloomberg:
The resistance of G-20 leaders at their summit in Mexico to increase the funds of the IMF available to assist euro-area countries reduces the feasibility of the second Greek bailout package.
Those policy makers have rebuffed European demands for additional funds. In their communiqué, they wrote, “At Cannes, our leaders asked us to review the adequacy of IMF resources…Euro area countries will reassess the strength of their support facilities in March. This will provide an essential input in our ongoing consideration to mobilize resources to the IMF.”
They signaled Europe is unlikely to receive special treatment, even if the organisation musters new resources. The finance ministers and central bank governors stated, “These resources will be available for the whole membership of the IMF, and not earmarked for any particular region.”
That sense of potentially fraying cooperation has European markets slipping a bit this morning and weighing on the U.S. futures. Wasted airfare and wasted opportunity.