It is also good to see that it is only Economic Vandalism when the Senate tries to block tax increases, yet it is good economic policy to throw away billions of dollars in short term one-off payments, just as the economy (and particularly corporate tax revenues) hit the wall. I doubt we will see a budget surplus by year end.

US economist Paul Krugman, a fierce critic of US President George W Bush's handling of the global financial crisis, won the Nobel Economics Prize Monday.

In his New York Times newspaper column Sunday, Krugman said Brown and Darling "have defined the character of the worldwide rescue effort, with other wealthy nations playing catch-up.

"The Brown government has shown itself willing to think clearly about the financial crisis, and act quickly on its conclusions," he wrote.

"And this combination of clarity and decisiveness hasn't been matched by any other Western government, least of all our own.

"The British government went straight to the heart of the problem - and moved to address it with stunning speed.

"Luckily for the world economy ... Brown and his officials are making sense. And they may have shown us the way through this crisis."

http://news.theage.com.au/business/british-bank-action-wins-laureate-praise-20081014-500r.html

1. Guarantee the inter banks lending
2. Taking equity in the banks
3. Guarantee of the punter deposits

This will probably will save his political skin.

“Who do you think is responsible for the global financial crisis?” Most people answered “Greedy financial institutions”. Is there any other kind?