G7 "Plan of Action" is out
"The G-7 agrees today that the current situation calls for urgent and exceptional action. We commit to continue working together to stabilize financial markets and restore the flow of credit, to support global economic growth. We agree to:
"1. Take decisive action and use all available tools to support systemically important financial institutions and prevent their failure.
"2. Take all necessary steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding.
"3. Ensure that our banks and other major financial intermediaries, as needed, can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses.
"4. Ensure that our respective national deposit insurance and guarantee programs are robust and consistent so that our retail depositors will continue to have confidence in the safety of their deposits.
"5. Take action, where appropriate, to restart the secondary markets for mortgages and other securitized assets. Accurate valuation and transparent disclosure of assets and consistent implementation of high quality accounting standards are necessary."
You can read more comments from Treasury Secretary Henry Paulson here, assuming you have nothing better to do on a Friday night! And of course, the real test of the adequacy of the statement and any other government actions will be how the markets react, beginning Sunday night.