A fresh sign of the deterioration in credit market conditions emerged Wednesday when one of the most closely watched barometers of sentiment broke through a key threshold. The Markit iTraxx Crossover index rose above 1,000bp for the first time since its creation in 2004, implying a record number of companies are on the verge of default.

What the world needs right now is a rescue operation. The global credit system is in a state of paralysis, and a global slump is building momentum as I write this. Reform of the weaknesses that made this crisis possible is essential, but it can wait a little while. First, we need to deal with the clear and present danger. To do this, policymakers around the world need to do two things: get credit flowing again and prop up spending.

If you're a U.S. taxpayer you ought to read GM’s "Restructuring Plan for Long-Term Viability." By the end of next year, you'll own a good chunk of this company, so you might as well familiarize yourself with what's going on there.