How the world's economies are coping: only Iraq thrives in world slump

Economics through the looking-glass: only Iraq thrives in world slump • Governments scramble to formulate bail-out plans • Anti-capitalist states plagued with their own misfortunes • Oil price fall could scupper even Baghdad's optimism Europe EU governments yesterday rushed to adopt UK-style financial rescue plans, with Germany close to adopting a scheme for €150bn (£119bn) in guarantees and capital injection for its banks. The Spanish cabinet approved a €30bn fund, which can be raised to €50bn, to buy "quality" assets from banks, and it increased the deposit guarantee to €100,000. Ministers said the scheme would cost taxpayers nothing. Italy, which approved emergency legislation to recapitalise banks and inject equity on Thursday, said it would ban short selling in all stocks, not just banks and insurers, on the day after... [read full story]