G-20 frets over danger of asset bubbles
TEXT OF STORY
Bill Radke: Finance ministers from the Group of 20 nations are meeting in Scotland today to review the state of the global economy. Marketplace’s Stephen Beard tell us they are worried about a new threat from an old enemy.
Stephen Beard: The trillions of dollars pumped into global economy seem to have staved off a second Great Depression. But now G-20 finance ministers are fretting about another problem: the danger of asset bubbles. All the cash sloshing around the system has fueled a surge in the price of financial asset. Stock values worldwide have doubled since March. Gold has hit a record high. In Britain, which is still officially in recession, house prices are rising.
Graham Mather is with the European Policy Forum. He says G-20 finance ministers are keenly aware it was asset bubbles that got us into to this mess.
Graham MATHER: Last time they missed that happening. This time they are determined not to let that go past without taking action.
But there are still serious doubts whether bubbles can be correctly identified and deflated without pushing economies back into a slump.
In London this is Stephen Beard for Marketplace.
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