Asia Bailout Fund

A week after the U.S Congress reluctantly passed the $700 billion bailout package, it seems Germany and Europe has to follow suit. Germany just had to guarantee all bank savings and stepped in with the biggest bank rescue in their country's history, as the world financial crisis has moved from the US economy to the world at large.

Thus far, it seems that the massive US bailout package has done little to calm investor nerves with major stock markets dropping almost daily. I put the blame on those idiots in the U.S Congress who voted against the bailout the first time. Wall Street dropped 777 points after that vote and that increased the turmoil that has shook stock markets around the world.

Leaders of France, Germany, Britain and Italy now pledged to step up coordination on tackling the financial crisis, but refused to set up a joint bailout fund for European banks. They may not have a choice anymore.

The German government’s emergency rescue package of Hypo Real Estate (HPE), the country's fourth-largest bank, follow French Bank BNP Paribas agreement to take control of ailing finance group Fortis's operations in Belgium and Luxembourg. Saving banks seems to be the new hobby in the financial world now.

However after the bailouts in the U.S and Europe, maybe it’s time for Asia to wonder if this is the time to set up a fund for banks as well. After all, it’s only a matter of time before a bank in Asia is hit. Why not set up a bail-out fund beforehand?