It's been a while

Indeed it has. But Britain may well have the scalp of another global triumph, as Gordon Brown pioneered a new European solution to the credit crunch.

Not since the end of the Second World War has Britain made perhaps such a defining decision that could potentially stabilise the worlds financial future for years to come.

With the US dithering over its own problems, a strong lead from elsewhere was needed, with Gordon Brown the surprise man to take on that task.

The announcement of the decision to recapitalise eurozone banks, made in Paris, has been strongly backed by all 15 leaders of eurozone countries, including French president Nicolas Sarkozy and the German Chancellor Angela Merkel.

The importance of the Europe-wide decision to recapitalise banks has seemingly been met with approval with investors too, as global markets have soared as confidence appears to be returning.

In Britain, the FTSE was up by 8%, and in both France and Germany markets increased by more than 11%.

Meanwhile in the US, the Dow Jones recorded its highest point and percentage rise since 1933, rising by 936 points or 11% after news that the US Treasury Secretary Henry Paulson was preparing to implement a similar idea to the tune of $250 billion, in an effort to shore up the nine largest US banks.

What does this mean for the North West? Well, this and the £37 billion injection of taxpayers money to nationalise the British banking industry should mean lending will rise again and credit be obtainable.

The issues at home for Gordon Brown now is to stabilise the rate of inflation, which today stands at a nine year high of 5.2%, as well as attempt to solve the problem of Britain's rapidly deflating housing market.

A global recession may now be inevitable, but a global depression not so.

Sources:

LEP - http://www.lep.co.uk/businessnews/Inflation-hits-nineyear-high.4587684.jp
BBC News - Peston's Picks
The Times - 12th, 13th & 14th October