Weekly Wrap: Tanking markets, government shutdown
A Wall Street sign in New York City's financial district.
Bob Moon talks with Sudeep Reddy from the Wall Street Journal and Leigh Gallagher from Fortune Magazine about another down week in the markets, the continued discussions on how to fix the world's economies and how much an impact a government shutdown may have.
On the possibility of a global recession:
Leigh Gallagher: This week, there's a lot of gloom hanging over the situation in Europe, and that is fueling this talk of a global recession, something on a global scale. But I think it's important to remember that the situation here in the U.S. is very different from Europe and if things were cranking right here right now, I don't think we would even be concerned with Europe. I don't want to oversimplify things, but the markets are psychological.
On the IMF and G20 meetings:
Sudeep Reddy: Unfortunately, what people have been looking for, which is new action, just isn't happening. The G20 issued a statement trying to calm markets and reassure people, but it was certainly a clear recognition from goverments that they recognize that they're in a race against markets right now, and they recognize they need to take action. The problem is that on a global scale, we're seeing political paralysis.
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