Protectionism in all its forms and fashions is being employed around the globe in varying degrees. Some forms are subtle, like supporting local companies and not foreign ones in specific industries (autos in France, Italy, France, etc) or overt like the ” buy American” provisions of the first draft of Obama’s stimulus bill. French FM Lagarde is on the wires now saying the French auto bailout is not protectionist and that she has discussed the plan with the EU commission. She calls for more coordination in crisis response, a familiar European refrain in recent days.
Range-bound action has predominated during the US session as the market awaits the Geithner plan tomorrow and the stimulus votes in Washington later in the week.
