The global economy is in such chaos that it needs the equivalent of bankruptcy protection, David Ignatius writes in the Washington Post. "Bankruptcy, if properly managed, is a workout process that provides a pathway back to solvency," he argues. "Companies often reemerge from bankruptcy healthier than before; often, some assets are sold to other companies that can make better use of them."
The key is getting help from governing agencies in establishing a firm footing. For the US, the $700-billion bailout should help move that along. But the IMF "has been utterly impotent in the crisis," Ignatius laments. "It's time to abolish this bootless institution and create a new one that can help manage the global workout."