An interesting article at the New York Times by Paul Krugman - Moment of Truth. It explains the need for a coordinated response to an international crisis. It also suggests that the British response of providing capital to banks directly will better help restore the battered money markets. It appears the US Treasury is slowly coming around to the idea that there initial plan to buy toxic mortgage debt is a bad way to spend $700bn.
The Stock Markets have been plummeting again this morning. There is a real danger that if a powerful coordinated response is not generated, the markets could slip beyond our grasp.
In my recent essay on the causes of The Great Depression, it was interesting to note how many similarities there were between 1929 and now. Of course, there are differences, but, it is still cause for concern.