Global Finance Leaders Warn of Risk From U.S. Housing Woe

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TOKYO — Finance leaders from the world’s wealthiest nations warned Saturday that global economic woes could get worse from the slump in the American housing market, but offered few specific remedies.

In a statement issued after meetings in Tokyo, the finance ministers and central bank chiefs of the Group of 7 industrialized nations offered a more pessimistic view of the global economy than they did four months ago, after their last meeting. They also said the fundamental elements of the global economy remained strong and the United States was likely to avoid recession.

The finance leaders from the United States, Japan, Germany, France, Britain, Italy and Canada warned that global growth could continue to slow as a result of the credit crisis set off by America’s subprime mortgage problems. The statement also pledged joint action to calm shaken financial markets, but it was short on specifics, especially on steps to rekindle growth.

It did not press member nations to pick up the slack from the slowing United States economy by stimulating their own domestic growth. It also did not contain any dramatic joint action, like a coordinated cut in interest rates, as some had hoped.

“The world confronts a more challenging and uncertain environment than when we met last October,” the statement said. “We will continue to watch developments closely and will continue to take appropriate actions, individually and collectively, in order to secure stability and growth in our economies.”continues here

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