US economists give thumbs up to latest US move

A roundup of economists' views on the US bank recapitalization move. Good, helpful reading even for the non-economist.

More about the plan.

Thanks to Marginal Revolution for the links. Tyler Cowen of MR writes,

In the current version of globalization the equilibrium seems to be that non-guaranteed banking systems are swiftly penalized and turned into zombies. This suggests, by the way, that undoing current bank guarantees, when recovery comes, won't be as easy as we might have thought.

That statement applies to the guarantees in the UAE where the leadership has said that these guarantees will last three years. Was period chosen to assure depositors they would last at least that long. When the guarantee was first announced the period was not stated; I wonder how many depositors had doubts about how long the guarantee was good for or whether it was meant to be forever?