Too tired to write about this but here are the basics:
The key measures announced were: a pledge to guarantee until the end of 2009 bank debt issues with maturities up to five years; permission for governments to buy bank stakes; and a commitment to recapitalize what the statement called “systemically” critical banks in distress.
Good move. Futures up everywhere. U.S. must follow suit.
This isn’t going to solve everything but it will help get money flowing again and that is absolutely essential.
Mr. Paulson, it’s your move.