Joe Roseman: What would Butch and Sundance do?

WHAT WOULD BUTCH AND SUNDANCE DO?

As equity markets hit crisis point amid fears the US economy is heading towards another recession, and with European banks facing a liquidity crunch, it is time for policymakers to face facts.

There is no muddle-through in the current crisis. Hope and procrastination will only lead to the worsening of an already dire situation. There are really only two options facing the US, UK and Europe – accept an eventual sovereign bankruptcy and with it the demise of much of the Western banking system, or figure out a way of currency debasement that limits the damage. Without wanting to trivialise the situation, I suggest global leaders turn to the classic film Butch Cassidy and the Sundance Kid. This film has an important message for participants in the current financial crisis. In t...