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London - The British government could learn a great deal from the swift and decisive manner in which the American government is striving to save the economy from ruin.
Many British financial commentators yesterday jealously regarded events on the other side of the Atlantic Ocean and said that the Americans' handling of the current economic crisis was in stark contrast to Britain's bumbling approach.
The Daily Mail said that the quick and firm overnight action by the American Treasury Secretary Henry Paulson, in nationalising Fannie Mae and Freddie Mac, had had the effect of immediately lifting markets' heads.
In contrast, the Bank of England and the British treasurer had taken five months to nationalise the embattled Northern Rock bank, slowly and piecemeal.
"In any case, America prefers pragmatism to principle, decisiveness to indecision," declares the Times in a lead article, saying that the American approach has had more success, with the dollar getting stronger against the pound, and the American economy having been able to ward off a recession so far.
The Independent lauds Paulson for his willingness to fire the management of Fannie Mae and Freddie Mac (whose full names are Federal National Mortgage Association and Federal Home Loan Mortgage Corporation), and punish shareholders.
In contrast, Northern Rock's management fumbled along for months, treating shareholders with kid gloves.
The Times said that the British government, the Bank of England and the Financial Service Authority ought to ask themselves whether they shouldn't, like the Americans, play a larger role in the current crisis.
The Independent says it's time that British regulatory authorities and politicians who failed to insist that banks lend money in a responsible manner should also be called to account for the current problems.
"The markets are not only the ones to blame for the credit crunch. The regulators have failed as well."
- Fin24.com