Credit crunch cash & carry

Published on Monday 6 October 2008 21:44

WHAT would you name the person responsible for doling out the US's $700 billion bail-out fund? You could do worse than Neel Kashkari, at least if you fancied a bit of silly smirking with your global economic meltdown.

Currently the Treasury's assistant secretary for international affairs, Kashkari is expected to be announced as the interim head of Treasury's new Office of Financial Stability and thus in charge of the cash meant to counter the collapse of the world economy.

The 35-year-old Kashkari is a former Goldman Sachs banker, the investment giant once headed by Treasury secretary Henry Paulson.

Will Kashkari make a better record of contributing to the world economy that the US has done previously?

History buffs will remember the last time the US had a cash & carry law, as it tried to ensure its neutrality on the Second World War.

Sure, the US agreed to sell fighter planes and armaments to the Allies, but its insistence of cash up front and pick-it-up yourself meant the UK nearly went bankrupt. The US later adopted the lend-lease programme so the Allies could pay later, which also nearly bankrupted Britain.