Don't worry, here comes the Government

When the US House of Representatives initially rejected the Bush/Paulson proposal for a $700 billion rescue package for American banks, I had mixed feelings. The first was a combination of surprise and disappointment. Surprise that it had been rejected and disappointment that it would mean a lot of market volatility, at least in the short-term. My second feeling was one of admiration for the democratic process in the US and also for the fact that common sense had prevailed. America, like the UK, has enjoyed an economic boom built on excessive borrowing by both the consumer and the gover...