DITHERING: A LETTER TO THE ECONOMIST (October 13, 2008)
In the opening paragraph of your main leader on the unfolding global crisis of confidence you blame governments far and wide for dithering (“Saving the System,” October 11, 2008). Fair enough. Midway through the article you ascertain that “the lesson of history is that early, decisive government action can stem the pain and cost of banking crises.” No quibbles here. In the concluding paragraph you refer to the current turmoil as “the biggest asset and credit bubble in history.” Spot on. Wait a moment, though. Why would you ever expect governments not to dither in a crisis so severe that lessons of history hardly pertain? Besides, is it not another lesson of history that governments everywhere are prone to dithering, especially in crises?