And heading where?
The deficit in political leadership, both in the US and Europe, is the focus of FT commentary today (see here, here, and here). It seems clear that another financial crisis is brewing, with its epicentre this time in European sovereign debt problems rather than U.S. subprime mortgages, but policy response has so far been woefully inadequate to the task.
But what would you have them do?
As John Authers points out, "sovereign credits are no longer available for use. The rebound of 2009 came once it was clear that governments were prepared to put their own credit behind the troubled banks. This time around, sovereign credit itself is at issue." Read more