Four weeks ago, I told my China Strategy subscribers that in order to calm the financial crisis, countries around the world needed to follow China's example.

China's leaders understood the severity of the global financial and economic problems in mid September—long before many countries would even acknowledge it. Immediately following the Lehman Brothers collapse, China made a decisive move to protect the country's economy—the Chinese government slashed interest rates by 27 basis points and lowered the reserve-requirement ratio for banks by 1%.

It was the first rate cut for the country in six years, and it couldn't have come at a more strategic moment. At that time, I stressed the importance of a global coordinated rate cut.

However, instead of immediately following China's smart move and cutting interest rates, the U.S. tried several other routes to solve the financial crisis first. Each of these routes have been steps in the right direction, but none have supported the markets or economy the way a quick rate cut would have after the collapse of Lehman Brothers.

Third Time's the Charm?

After several financial institutions across America collapsed in a domino effect in September, the U.S. government tried to inject funds into the markets with a historic $700 billion bailout plan. This rescue plan briefly supported the markets, but investor confidence soon fizzled as they realized that the U.S. financial crisis had spread beyond our borders and had damaged financial markets across the globe.

So two days later, the U.S. Federal Reserve came up with another plan to try and boost confidence and support the markets. The Fed said it would create a fund to purchase commercial paper, which would help companies fund their payrolls, inventory and other cash needs. Some investors thought this would surely boost the markets, but instead the markets plummeted further.

And then finally, last Wednesday, it seems that the U.S. government finally came to its senses and made a third attempt to stabilize the markets.