World Finance Ministers Meet

The G-8 finance ministers,which include the U.S.,U.K.,Germany,Italy,Spain,Russia,Japan and Canada,met over the weekend in Rome to discuss the financial crisis.It was an opportunity for the ministers to speak with Timothy Geithner,the new U.S. Treasury Secretary,and hear the Obama administration's plans for dealing with the crisis.The G-8 focused on what to do about the troubled assets held by many large banks,that are causing the low confidence at the root of the crisis.Mr.Geithner suggeted a new public-private fund to insure some banks from further losses caused by troubled assets.Other banks could be relieved by a direct purchase of the assets by the new fund.The new rescue fund,together with an exisiting rescue fund,could add up to more than two trillion dollars.The rescue funds are in addition to the 787 billion dollar economic stimulus package to be signed into law by President Obama today in Colorado.The response must be massive,Mr.Geithner said,because the crisis itself is massive.The response must be deep and broad enough to last as long as the severe recession does.