Pearlstein noticing the big picture on the global economy--as always

ECONOMY & BUSINESS: "In Portugal, as in America, a 'Third Way' Is Reemerging," by Steven Pearlstein, Washington Post, 6 May 2009.

Nice piece by the always engaging and intelligent Pearlstein, whom I never fail to read.

Starts with long laundry list of European economic woes and how so many there blame the usual Anglo-Saxon culprits (Brits and us).

As one French financial minister says, "In terms of further market liberalization, I would say the window of opportunity is now closed."

Ahem!

Then Pearlstein counters:

But the real story in Europe may be how firmly market liberalization seems to have taken hold. Not only have there been few, if any, calls for re-nationalizations, but some countries are still moving toward privatization and reregulation. Instances of protectionism are outweighed by the examples of cross-border mergers and acquisitions that have been accepted as a matter of course--Fiat's designs on GM's Opel, based in Germany, is the latest. And in the face of international calls for additional fiscal stimulus, both governments and voters have been reluctant to borrow and spend their way out of this recession.

The ending intrigues:

Back in the days of Bill Clinton and Tony Blair, there was a lot of loose talk about a "third way" that would combine the best features of Anglo-American capitalism with the social and economic safety net prevalent in Europe. If Portugal [policies described here] is any indication, Europe has been moving in fits and starts toward market capitalism ever since. Now that Barack Obama has become the most popular politician in Europe and his administration back home is intent on increasing the profile of a more-competent government in the workings of the American economy, a convergence seems possible once again.

An example of the amazing optimism that Obama's sensible and steady--and ambitious--hand imparts during these strangely stress-filled times.