How financial concussions have shaken global politics
A reflection on how both global and domestic politics are being shaped by the financial turmoil.
"Endorsement of a flawed plan is now a necessary but not a necessarily sufficient condition for stability. The banks need new capital. Some will probably come from sovereign wealth funds. But taxpayers, Americans and Europeans will also have to stump up further in coming weeks and months. Whatever the future course of the crisis – and, in the words of one central banker, “no one bets more than a couple of hours ahead on this one” – it is clear that several sticks of Mr Paulson’s dynamite have already exploded under politics. Most immediately, the maelstrom on Wall Street has transformed the US election campaign. Three weeks or so ago it looked like the contest would be fought on John McCain’s chosen territory. Russia’s invasion of Georgia had put national security up in lights... That was then. We are back now to the economy, stupid. This must be Democrat ground."
"Endorsement of a flawed plan is now a necessary but not a necessarily sufficient condition for stability. The banks need new capital. Some will probably come from sovereign wealth funds. But taxpayers, Americans and Europeans will also have to stump up further in coming weeks and months. Whatever the future course of the crisis – and, in the words of one central banker, “no one bets more than a couple of hours ahead on this one” – it is clear that several sticks of Mr Paulson’s dynamite have already exploded under politics. Most immediately, the maelstrom on Wall Street has transformed the US election campaign. Three weeks or so ago it looked like the contest would be fought on John McCain’s chosen territory. Russia’s invasion of Georgia had put national security up in lights... That was then. We are back now to the economy, stupid. This must be Democrat ground."
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