James Grant talks about the $700bn bail-out plan

James Grant, publisher of Grant's Interest Rate Observer, believes the bail-out plan before Congress may not solve the problems around mortgage-backed securities. There is a risk the US becomes "the new Japan" and stumbles for years to come. "The risk is the government, with all these well-intended but very heavy handed interventions, keeps markets from really clearing, keeps securities from really getting cheap...which would not be good, at least for investors." Mr Grant, an admirer of the gold standard, believes there could be a return to an international system, like Bretton Woods.