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SWITZERLAND 25-29 Jan 2012 World Economic Forum meets amid continuing crisis

When some 2500 of the world’s government and business leaders–and probably more heads of state than usual– gather for the

January 25, 2012 - NULL

SWITZERLAND 25-29 Jan 2012 World Economic Forum meets amid continuing crisis

When some 2500 of the world's government and business leaders--and probably more heads of state than usual-- gather for the 2012 World Economic Forum at Davos, they will meet amid a crisis. The forum theme, "Mastering complexities has emerged as the core competence demanded of leaders tasked with ensuring the well-being of their stakeholders," belies any sense of crisis, yet developments that include extreme stock market volatility are stoking fears of a global financial meltdown.

The plunging stock market, euro troubles, sovereign debt, ailing banks and the

SWITZERLAND 25-29 Jan 2012 World Economic Forum meets amid continuing crisis

When some 2500 of the world's government and business leaders--and probably more heads of state than usual-- gather for the 2012 World Economic Forum at Davos, they will meet amid a crisis. The forum theme, "Mastering complexities has emerged as the core competence demanded of leaders tasked with ensuring the well-being of their stakeholders," belies any sense of crisis, yet developments that include extreme stock market volatility are stoking fears of a global financial meltdown.

The plunging stock market, euro troubles, sovereign debt, ailing banks and the debt-crippled United States economic contribute to the doomsaying.
A temporary ban in several countries on short sales--negative bets on stocks -- is widely seen as ineffectual. RTT reported on Aug 18 that the euro has come under renewed pressure, after a brief reprieve, amid rising fears that the European banking system is on the verge of a collapse. The financial news publication notes that with the region's sovereign debt crisis unresolved despite vague plans for a euro zone economic government, traders have grown anxious about the long-term prospects for the single currency.

French President Nicolas Sarkozy and German Chancellor Angela Merkel, who are likely to be at the WEF in January to defend measures, such as the ban on short sales, say they will never abandon the euro. The French president could also be there to push his call for curbs on commodity speculators. The 2012 forum is likely to see Russian President Dimitry Medvedev, who addressed the gathering in 2011. In 2012, his message could echo the recent scathing criticism of the United States by Russian Prime Minister Vladimir Putin.

As reported by Bloomberg on Aug 19, Putin denounced the United States as a "parasite" because its rising debt weighs on the global economy. And President Barak Obama could come to the forum to try to shore up confidence in his country. (WRITTEN Aug 2011)

RELATED READING:

2012 World Economic Forum
http://www.weforum.org/events/world-economic-forum-annual-meeting-2012

Four European nations to curtail short selling (NYT 11 Aug 2011)
http://www.nytimes.com/2011/08/12/business/global/europe-considers-ban-on-short-selling.html

Putin Denounces American Parasite While Russia Increases Treasuries 1,600% (Bloomberg 19 Aug 2011)
http://www.bloomberg.com/news/2011-08-18/putin-slams-u-s-parasite-after-1-600-jump-in-russia-holdings.html

Date written/update: 2012-01-25