Global Central Banks Move to Support Markets

Tuesday, March 11, 2008 10:02 a.m. EDT
As a sense of panic impacts the markets, Fed action is becoming more frequent and more innovative. The hope is that action now will be enough to prevent the global financial crisis feared by so many.

In a coordinated effort that might seem desperate, the Fed announced this week it will lend up to $200 billion of Treasury securities to Wall Street firms. European and other central banks – fearful of coming credit implosions abroad and at home – have joined in, too.

In the statement appeared a novel reason for Fed activity, "to promote liquidity and foster the functioning of financial markets more generally.â€