Monday, October 13, 2008

Europe takes action

European leaders have united in common action to help prop up failing banks. Indeed, the efforts of a dozen countries appear more unified and clear than the efforts of our United States government...

Paul Krugman likes the action, and especially Gordon Brown's leadership (a name not often associated with that term). You should listen to Krugman. He's a Nobel economist now.

Krugman writes that the US plan has been fickle and slow, whereas

the British government went straight to the heart of the problem — and moved to address it with stunning speed. On Wednesday, Mr. Brown’s officials announced a plan for major equity injections into British banks, backed up by guarantees on bank debt that should get lending among banks, a crucial part of the financial mechanism, running again. And the first major commitment of funds will come on Monday — five days after the plan’s announcement.