Last week I posted the comments by German Finance Minister Peer Steinbruck who told parliament that America’s days as world financial leader were coming to a close.

Wolfgang Munchau writes in today’s Financial Times that it is a good thing the crisis that has hit Wall Street did not occur in Europe. They would not have been prepared. He comments, “He was lucky that last week’s crisis did not happen in Berlin or Paris or Rome. He (Peer Steinbruck) and his colleagues would have been totally unprepared.”

He goes on to say that the current banking arrangment in the EU is outdated. America’s crisis is sending a signal to world markets that they need to heed the warning, learn the lessons and put in place a system that keeps them safe fromwhat has happened to America.

I am sure there are minds already at work on this. The global capital market will soon have an opportunity to pass judgment on the bailout plans of Congress. If they don;t like what they see and refuse to continue financing our debt it will get a lot worse.

The next American president will have some major financial problems to face on January 20, 2009. Events are already shaping his administration’s focus.