World finance leaders in Washington

President Bush pinned the blame for the financial meltdown on fear and uncertainty. He said many Americans are worried about their retirement funds and the health of the American economy. In a series of moves, the U.S. government is putting billions of dollars on the line. Mr. Bush plans to meet with financial leaders from around the world to coordinate these efforts on a global scale. The Bush administration is meeting with leaders from the 7 leading developed nations, the IMF, and the World Bank. This analyst says our regulators and government have looked like a rabbit caught in headlights, according to this analyst, and now those people responsible have realized what the problem is. He says banks are both the problem and solution. He says one step towards a solution is to inject cash directly into troubled banks, as Britain has done recently. While the financial crisis is global, there is now global regulatory cause, and that’s one part of the problem, says the IMF Director. He says there might be a role for the IMF for creating a regulatory framework, but the IMF has never done that before. The World Bank President says the key is improving cooperation from governments around the world. He also wants to enhance cooperation between the G7 and emerging countries like China and India. The challenge now is to do so in the midst of a fast moving crisis.