The Financial And Capital Markets

The financial markets seemed to respond positively to the G20’s list of initiatives last week; and it comes as little surprise. Heading into the summit, US equities and commodities were set within a steady advance. As such, the market was merely reacting to the questionable event through its natural bias. However, true investment conditions have not improved with meeting of the world’s most powerful. The commitments made are merely promises for action until nations actually institute the steps drawn up in the statement; and considering the state of individual economies, few will be eager to reroute vital aid away from the domestic fire in order to help extinguish a much bigger financial fire. In the meantime, the capital pool and potential for returns from US assets continue to shrink. Consumer spending threatens to drive the world’s largest economy into a true depression, while the government runs out of options.