Euros Eat Their Words as Own Bailouts Loom

A week after ripping US for crisis, dismissing need for own plan, Brown et al. retool
By Clay Dillow,  Newser Staff
Posted Sep 30, 2008 2:38 PM CDT
Man of the people: French President Nicolas Sarkozy, critical of the US financial bailout a week ago, is coming around to the state-backed way of thinking as his nation's banks require bailouts.   (AP Photo)
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(Newser) – European leaders are eating their words a week after criticizing the US for allowing its banks to run dry and engineering a system-wide bailout for financial firms, Bloomberg reports. Governments across Europe, including Germany, the UK, Belgium and France bailed out banks across the continent and pledged support for others as Europe faces its own financial meltdown.

“The gods of the markets are punishing those who showed hubris,” one analyst said. “Europe has been bashing the US, but it's realizing now it has its own problems.” Added another: “The US experience should send a clear message to Europe that you need a contingency plan. The fact there still isn't one will focus investors on the vulnerability of Europe's economy and financial system.”