an idea to solve this crisis

I keep looking at the TED spread as many of you who are following my posts would know. The TED in it's basic understanding is a measure of spread between the LIBOR and the Fed Treasury Rate. What the spread is indicating when it rises is the confidence factor between Banks to Lend to each other.

What does lend to each other mean though?

In Finance it means all Counterparty Risk transactions that are conducted by Banks and include Credit Deravitives, Credit Swaps, Letters of Credit, Commercial Paper, Trade Credit Insurance and other forms of Promissory Notes.

My suggestion then is that a Global Clearing House is formed which Clears ALL transactions around the World by guaranteeing the respective counterparty transaction.In other words this Clearing House is memeber based.

The members of the House (eg countries) endorse their country's Bank's for risk. In other words if the Country is guaranteeing there Bank's risk then they are responsible for the rating (analysis) of the strength of the respective Bank's Balance Sheet.

The Bank if endorsed by the Clearing House are endorsed by the respective Country and as such confidence boils down to the country and not to the individual Bank. If the contract fails the country's treasury is responsible for the payment of debt (lender of last resort).

This organisation is set up for a period of not less than 2 years until Bank's regain confidence in dealing with each other. When the Bank's have gained confidence the Clearing House is rolled back.