Global Economy Needs Shelter From the Storm

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." (More IMF stories.)