Monday, October 6, 2008

European Resistance

In the face of similar problems facing its financial sectors, including a credit freeze and banks on the edge suffering from mortgage loses, the Europeans are showing more restraint than the U.S. in bailout measures. Their solutions so far of deposit guarantees and bans on short selling are trivial compared to the hundreds of billions of dollars flowing out of Congress.

I don't think this is because Europeans support laissez-faire free market principles more than Americans do—rather, I think getting the member nations to agree on who-pays-what will be more of an obstacle than with Congress.

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