Quis spondebit ipsos sponsores?

(My attempt at “Who will bail out the bailers?”)

UK Government considering plan to recapitalize banks

Hey, is it my imagination, or does Alistair Darling bear an uncanny resemblance to Barney Frank?

Barney Frank

Alistair Darling

Anyway…  The Brits seem to be considering the “Swedish model” rather than the “ex-Goldman CEO U.S. Treasury Sovereign Wealth Fund” model.

Hypo Real Estate bailed out

I do not know what “Hypo” is, exactly, but apparently it needed €5 x 1010 this weekend or Europe would have plunged into a new Dark Ages.

I have to be honest, I am a little worried about Germany’s decision to insure all bank deposits.  I mean, if this were such a good idea, I suspect someone would have thought of it before Oct 2008.

Governments and central banks worldwide appear to be in a state of panic.  Hope it’s not contagious.

Update

By the way, a coordinated global rate cut is obviously coming.  Central Banks will try to time it for maximum surprise.  How, when everybody is expecting it?  No idea.  But that is my prediction anyway.

Leave a Reply