The Difference Between a Bailout and a Rescue

Britain teaches us what the difference between an economic rescue and a Wall Street bailout is:

The move amounted to a partial nationalization of some of those institutions...Mr. Brown said there would be "strings attached and conditions to be met" by the banks. "We expect to be rewarded for the support we provide...Our stability and restructuring program is comprehensive, specific and breaks new ground...This is not the American plan. Our plan is to buy shares in the banks themselves and therefore we will have a stake in the banks."

"We are not simply giving money," he said.

That last line is the fundamental difference. Britain is moving to recapitalize banks in exchange for ownership stakes. Henry Paulson and the U.S. Congress last week moved to give away $700 billion with no strings attached.