Because the eulogy of the British plan ends

Last Thursday, for the national day of poetry reflects, the English libretti apprentices have versifié on the theme of the "credit crunch". In French, it is very easy. It is sufficient to "credit" from "finished".

Sick, British banks have closed over the past year the credit tap. Combined with an oil shock, the effect is devastating. The thriving United Kingdom rose from 3 growth in 2007 to 1 expected this year and will experience a recession next year. Morality, if banks are more able to fund individuals and businesses, the economic machine running more. The impact has been immediate election, because the credit is part and parcel of growth through the financing of real estate. But the France will not immune under the pretext that French individuals are less indebted than their British neighbours. Or that the BNP Paribas and other Société Générale were less silly than the Royal Bank of Scotland and others.

Most importantly, there is no growth without restoration of health banks, as evidenced by the experience of the Japan. This is really more the problem of whether it is moral or not to fly to the rescue ugly speculators, the "fat cats", as it dubbed the nabobs of the City. Governments, the United States, Great Britain, eventually understand. And finally Europe is taking action.

Paulson's plan was disappointed: no one has understood how this would work. It is to the distressed assets in US banks in a "great trash." But at what price the taxpayer will repeat them If he buys too low, the half of us banks is bankrupt; He bought too expensive, Wall Street financiers will still be full pockets... The British plan, unveiled last Wednesday, offers much more potential as he tackles, finally, the roots of the bad Bank.

For months, it procrastinates. Banks are suffering from a lack of equity or a lack of access to liquidity No matter, they may die of the two. This is why London strengthens both the solvency and liquidity. The beauty of the device, it is that it is optional and is not free (for bankers). Only those who want to come to the public assistance scheme, but they then agree to pass under the fork admit defeat of a strengthened governance (reduction of wages, priority dividend for the taxpayer...)...

More important still, the British Government was the first to understand the absolute need to provide facilities beyond the short term credit institutions... It offers its guarantee on new loans of less than three years issued by the Barclays and other Royal Bank of Scotland. Since then, French, Belgian and Luxembourg Governments also have used this approach for Dexia.

Why is this vital Since the bankruptcy of Lehman, on 15 September, all circuits that allow credit institutions to finance outside clients deposits, are closed. There are many people who have money to invest, others who claim. But they meet more, because the very basis of the monetary system has stolen shattered: there is no more an ounce of trust. There is no market.

The Fed and the ECB are struggling to provide liquidity to banks, serving in some kind of Chamber of compensation between stakeholders. But central banks do lend to short periods of time. But banks need to have access to a resource long to feel more comfortable and lend. The decline in the activities of market, combined to the reduction of the capital commitments what the Anglo-Saxons call "deleverage" promise to reduce the need for new financing. But, this will be progressive, and if this goes too far, the economy will suffer even more. In addition, it must always pay current loans falling...

Push the horizon, of course, this is essential. But are States must keep to everything in their charge. In the current debacle, their signature is the ultimate bulwark of credibility. They are not the squander, bringing their security at all - will. What happens if the State papers in turn become suspicious There is another solution. Central banks have supplied the market in the short term. They can play this role on the medium and even long term. Why the ECB and the Fed does lend them not in five years And too bad if it is inflationary.

The Governments of French, Spanish or German must rely on the European Central Bank, even extend its prerogatives. Because the eulogy of the British plan ends. It creates a distortion of major competition in Europe. What energy company will be keen to buy his covers on the price of electricity to BNP Paribas if Barclays guaranteed more security by switching part under public control What pension fund will agree to a duty of the Crédit Agricole if debt Lloyds TSB is stamped by Downing Street

We are in global markets. The bankruptcy of Lehman caused a collective fury, threatening to bring down banks one after the other. "Any wealthy Bank is a patient who ignores," seem to tell us now the Knock of finance. September 26, the first Icelandic Bank Kaupthing was preparing to announce results for its third quarter. Ten days later, she is in bankruptcy. The threat of contagion should not be underestimated. Even if, as a banker, wolves attack, as a priority, to the "last of the herd." Attention, there is always a final in the herd.