Just in case the epic collapse in the NY ISM (an indicator virtually nobody had heard of until today) which tumbled from 61.2 to a 49.9 contraction, was not enough of a hint that the economic virtuous cycle is a myth, and that CTRL-P'ing will be required, here comes the latest rumor via Reuters:
- G7 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS TO HOLD PHONE CALL ON EUROPE TUESDAY MORNING - CANADA FINANCE SPOKESWOMAN
Will they discuss just any old plan, or DAS MEISTER PLAN? Stop talking about and just do it already. It's not like anyone expects it.
Finance ministers from the Group of 20 will discuss the European debt crisis on Tuesday, Canadian Finance Minister Jim Flaherty said on Monday.
Asked whether the crisis was an issue for the G20, Flaherty told reporters: "I've been having discussions and I will have more discussions tomorrow morning, and subsequently with my G7 colleagues."
He added: "Those discussions also take place with some of the non-European members of the G20 ... who are concerned around the world outside of the euro zone with the potential consequences of a crisis in the euro zone, particularly a banking crisis."
Flaherty did not provide details about which colleagues he was speaking to and what the result of the talks might be.
Leaders of the G20 advanced and emerging economies will meet in Mexico June 18-19 and Europe is likely to dominate the agenda.
On Monday, financial markets were rattled by the deepening problems in the euro zone, as well as by disappointing U.S. jobs data and weak Chinese manufacturing figures, all of which spurred more concern about the global growth outlook.
Flaherty said Canada's economy was in relatively good shape compared with other industrialized nations, although he noted that employment data has been "a bit bumpy" in recent months, and that Canada could be hit by Europe's troubles.
"The real concern right now is Europe of course - the weakness in some of the banks in Europe, the fact they're undercapitalized, the fact the other European countries in the euro zone have not taken sufficient action yet to address those issues of undercapitalization of banks and building an adequate firewall," he told reporters.
"So this is a continuing concern."