THE BRITISH BAILOUT….From the Guardian:
Gordon Brown will announce plans today to use up to £50bn of taxpayers’ money to take major stakes in the high street banks in a last-ditch attempt to restore confidence in the financial system.
Adjusted for the size of our respective economies, this is about the equivalent of $500 billion. In other words, nearly as big as the Paulson bailout. In other words, big.
However, they’re using their money to recapitalize banks, not to buy up troubled assets. Paul Krugman approves.