Euro Nations Agree to Guarantee Bank Debt

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.


One Response to Euro Nations Agree to Guarantee Bank Debt

  1. UK Voter says:

    I agree this is a good move, but because the financial system and banks are so interconnected, it needs to be worldwide. The American and Europeans have no chance of dealing with this alone, a global crisis means just that. I suspect, however, that each European country, whilst subscribing to the principals, will fiffer greatly on the detail and that may still lead to a much weakened response.

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