Asia, Europe meet on financial system
Asian leaders gathered with their European counterparts in Beijing to see what could be done to get out of a global tailspin. Scott Tong reports there are two competing world views on the world financial system.
Chinese President Hu Jintao (second right) speaks to Japanese Prime Minister Taro Aso during their meeting in the Great Hall of the People -- October 24, 2008 (Pool/Getty Images)
More on International, Asia, America's Financial Crisis
TEXT OF STORY
Renita Jablonski: The last few weeks, it seems Fridays have ended up being days *full of fallout. Unfortunately, today's no different. Some incredibly steep declines in Asian stock markets overnight. This on a day when Asian leaders gathered with their European counterparts in Beijing. They're trying to get themselves out of this global tailspin. Marketplace's Scott Tong has more from Shanghai.
Scott Tong: Asian leaders today agreed to create an $80 billion bailout fund. Think of it as a neighborhood fire truck ready to hose down any burning house on the street.
Right now, global investors are fleeing emerging markets, which has ignited weakness in many currencies. European leaders in Beijing are taking notes, because Hungary, Belarus and Ukraine face the worst crises.
Here's economist Glenn McGuire of Societe General:
Glenn McGuire: When we look at Eastern Europe, it does look very similar to Asia in 96, 97.
The summit will also focus on rebuilding the world financial system.
There are two competing world views: one backed by the U.S., the other by the Europeans.
McGuire: If Asia was going to back anybody, then they'll be backing the more European, more activist role of government model.
Asian votes matter, because most of the world?s foreign reserves live on this side of the world.
In Shanghai, I'm Scott Tong for Marketplace.
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