February 13, 2009

As with the treatment of most crises, the one afflicting U.S. banks has an emergency-room phase and a long-term convalescence stage.In the short run, President Barack Obama’s administration is rushing to resuscitate the U.S.

Banking industry with cash infusions, guarantees, a fund to purchase banks’ illiquid assets and an initiative to foster new consumer and business loans. The strategy may or may not work.