October 17, 2008

Banks need time

There has been much talk about the government bail out of the banks in the UK and how this needed to be done in order to keep the money markets flowing. This move has been given the thumbs up by virtually every other government in the world, but it seems that is may not have been the idea of the UK government after all.

Before this ground breaking plan was put in place, official from the UK had a flying visit to Japan of all places; it was there were the idea was conceived after hearing from the Japanese officials on how they managed the banking crisis during the 1990’s.

However, there is one other thing that may have been overlooked, and that is time. The plan worked well enough but it was not a quick fix, the plan did not work until the banks had enough time to readjust and sort their banking out.

Source [FT]