Sarkozy is right about morals and finance

In London an epic drama is taking place, pitting Germany and France against America, Britain and other G20 nations. Leading the charge is the blast of fresh air the French now have as their president, Sarkozy. He and Chancellor Merkel are fighting the good fight to restore morality to our financial systems:

"At a joint news conference with German Chancellor Angela Merkel ahead of tomorrow's summit, The French President said now was the time to "moralise an immoral system".
"We are just trying to take responsibility," Mr Sarkozy said.

The two leaders left no doubt that they will refuse to sign an agreement which does not meet their "red lines" on tax havens, hedge fund regulation, banking transparency and a worldwide cap on bankers' pay.

Mr Sarkozy added: "This is a historic opportunity afforded us to give capitalism a
conscience, because capitalism has lost its conscience and we have to seize this opportunity.""

The total collapse of Wall Street's investment banks, the bankruptcy of the insurer of insurers (AIG), the bankruptcy of the American auto company (GM) which scrapped plans for an electric car in favour of gaz guzzling monsters, the climate which allowed a Madoff ponzi scheme to flourish despite warnings for years and years, the farcical role of the US rating agencies in giving AAA ratings to financial instruments with toxic assets as their underpinning – all of these are evidence that somehow, somewhere, American cowboy capitalism has lost its way.

Followed fairly closely by Britain, and with Canada a little bit further down the road but going in the same direction.

So let's all hope that the Germans and French do something that the Americans seem unwilling to do – put back morality into the economic system we all live in.