Not that anyone should have but if they did look to the G7 meeting for more clarity on the outlook for Greece and the possibility of a spread to other highly indebted countries and what the response would be, they didn’t get much. With respect to Greece, the French Finance Minister said “the European members of the G7 will make sure it is managed,” whatever that means. European debt and CDS in the PIIGS are wider and is weighing on their stock markets with Greece especially down 3+%. In terms of global stimulus and the exit, the Canadian Finance Minister summed up the goal but also the dilemma by saying “we need to continue to deliver the stimulus to which we are mutually committed and begin looking at exit strategies to move to a more sustainable fiscal track.” The WSJ reports Bernanke will lay out his strategy on exit. Unfortunately, the exit to their grand experiment has no precedent on such scale.
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