US rescue plan criticised by UK government
In a move which may well back fire at some point there was marked criticism of the US rescue plan by both Gordon Brown and Alistair Darling today, despite the fact that Mr Brown only last week had promised to back the US bailout 'whatever the terms'. So why has the US deal which he supported only recently gone so horribly wrong in the eyes of the government?
The truth is that last week every politician in the world thought that the US bailout was the answer to all of our problems. This was the move that would see world markets come back into line and liquidity return to normal in the money markets. Now that the deal has been approved and we are still seeing new dangers emerging it seems that every government around the world is trying to distance itself from the US move.
However, the US move had been structured in such a way as to assist overseas bank operating in the country, such as UK banks. Now that the plan is being criticised by the likes of the UK government, why would the US authorities want to be so liberal in the use of US tax payer's money to assist these non-US operations?
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