The good news is that President-elect Barack Obama has moved swiftly and boldly to end the policy impasse that has frozen credit, spooked markets and ignited fears of yet more bailouts.

By naming an economic policy team of seasoned warriors and promising a huge fiscal stimulus programme during his first week in office, Obama has made good on his promise that help is on the way. Had he taken the traditional path and waited until after his inauguration next month to take action, it is pretty clear that the downward economic spiral would only have accelerated.