Taken at face value, David Cameron’s warning this week about risks in the global economy sounds like it might be wonderfully prescient. Here’s the country’s economic chauffeur, carefully checking his instrument gauges, and sure enough, sees the same signs today that should have given us warning of the crisis of 2007-08. Time to apply the brakes.
Former top regulator Timothy Geithner defended terms of the US gov’t’s bailout of AIG, saying Wednesday that the insurance giant’s exceptionally risky behavior had caused losses that called for strict treatment.
It could be an awkward reunion. Three top former government leaders who devised the 2008 financial bailouts are set to testify this week in a lawsuit over the government’s rescue of the insurance giant AIG.
Market bulls have firmly taken control, sending the U.S. markets up for a second consecutive week and the Dow Jones Industrial Average to an 11-month high.