Can the U.S. Bail Fast Enough? Rising Tide of Worldwide Resentment

The BBC has two great collections of quotes from world opinions regarding the U.S. House of Representatives failure to pass a bailout package for the financial markets.

They can be read here and here.

My personal favorite comes from Business Daily in South Africa:

"Even with (a US bail-out plan), the world will be a tense place for a good while yet, especially if nothing is done to tackle the underlying causes of the credit crunch.

And what the demise of European banks has highlighted is that the solutions will have to cross borders rather than involve the US alone. Financial markets and those who play in them will have to be subjected to more and better regulation.

And regulators from different countries will have to work together in ways they haven't until now. But all this is not going to come together quickly, so the road ahead will be rocky. "

I think this quote reflects a growing realization that cross-border capital trading will have to be regulated on an international level.

The question is, 'Can a real framework for international financial regulation exist if the U.S. refuses to participate?"

I think so, but it will have to come about through soft law provisions.
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www.joshualenon.com