Somehow, George Bush has managed to make America lose faith in its economy, and the world to lose faith in our leadership. No wonder more people voted against him than for him.

Times Online

The possibility of a lame duck President brings me finally to the most interesting – if farfetched – consequences of the Wall Street scandals. By weakening Mr Bush, discrediting the US economic model and undermining America’s moral authority, these scandals will confirm a trend which began with the Axis of Evil speech and Mr Bush’s over-enthusiastic embrace of Ariel Sharon. By threatening to go to war against countries which have never attacked the United States, and boasting about his power to dispose of any political regimes not to his liking, Mr Bush has lost the respect of both America’s military enemies and its allies. Now the loss of international respect for the United States is moving a step further.

America has forfeited its global military leadership by blustering against President Saddam Hussein and failing to curb Mr Sharon. It has forfeited its global diplomatic leadership by abrogating treaties on climate change and criminal justice. It has forfeited its global economic leadership by protecting its steel companies and increasing subsidies to farmers. Now America is forfeiting its global business leadership by failing to enforce proper financial practices and ethical standards. This loss of American leadership will probably be the most enduring legacy of the scandals on Wall Street.