Pressure on G7 leaders to ease financial panic

THE eyes of the world will be on the G7 leaders this weekend, in the hope that the panic on the world's stock exchanges can be stemmed. It is probably too apocalyptic to suggest this is the last chance to get a grip on the markets, ease up lending and stave off another Depression. However, the hands of the clock are getting too close to midnight for comfort.

To date, attempts to rally the markets and restore confidence in the banking system have been bedevilled by two weaknesses. First, policy actions have been designed to contain the crisis, not resolve it root and branch. Second, there has been little ...