Europe has set the pace for the United States, opines the New York Times (HT: David):
After initially dithering, Europe's leaders came up with a financial bailout plan that has now set the pace for Washington, not the other way around, as had been customary for decades. That was clear when the Treasury Department decided to depart from its own initial bailout plan - the one approved by Congress earlier this month - and invest up to $250 billion directly in the nation's banks. The nuts and bolts of that approach had been laid out days earlier by European leaders as they tried to save their own financial system. And that outcome left Gordon Brown, the British prime minister, and Nicolas Sarkozy, the French president, in something of a commanding position to claim the title of wise men. They are now speaking of creating a Bretton Woods agreement for the 21st century.
Let's hope this will lead to less derogatory remarks about European "socialism" and welfare waste. Perhaps "European socialism" will even get a positive meaning, i.e. McCain's comparison of Obama to European socialists will not help him win votes.
Well, Europe has not got the financial crisis under control. There will probably be plenty of bad news and more government interventions ahead of us. I wonder who will call the shots in the new Bretton Woods style agreement, if there will be one. What role will China and the various Middle Eastern sovereign wealth funds play?