G20 Summit: Will it Work?

ST. PAUL, Minn. - The G20 Summit ended with a major deal in place to try to fix the global economy.

World leaders agreed to crack down on hedge funds and tax havens and create tough new regulations for financial institutions.

President Obama said the summit is a "turning point" on the road to economic recovery.

"This cooperation between the world's leading economies signals our support for open markets, as does our multilateral commitment to trade finance that will grow our exports and create new jobs," Obama said.

The leaders also decided to funnel over $1 trillion in loans and guarantees to poorer nations through the International Monetary Fund.

The big question now is, what are the specifics of this plan and will it work?

FOX 9 consulted an investment director and economics professor, who both point to the power assembled in one meeting of leaders from the world's 19 largest economies, plus the European Union, that together represent 80 percent of the world's trade. And the fact they talked at all is hopeful.

Professor Jack Reardon of Hamline University and James Copenhaven of Wealth Enhancement Group both see the G20 agreements as good steps, but no guarantee.

The collapse of AIG, for example, may have been stopped or slowed with some of the global regulations the G20 agreed to, and that's good to have going forward, but doesn't necessarily mean the problems are solved.

Copenhaven says the economy began sinking in 2007, but it wasn't really noticed until last summer. And the bailout money was to bail out the water -- G20 isn't far enough along to plug the hole.

"Now we've had time to get some of that water out, we've been looking for the leaks," Copenhaven said. "We've found some of the leaks and we're thinking how we're going to fix some of those leaks so we don't have the boat sink again."

Copenhaven thinks our money will rebound in time. Prof. Reardon says it all hinges on something less tangible.

"What's one of the crucial elements missing right now is trust," Reardon said. "Will this be enough to restore faith?"