The World

President Bush canceled a fundraising trip to stay in Washington. Today he spoke to reporters and said central banks will inject tens of billions of dollars into a rattled financial system in a necessary move. The White House declined to say what other actions are in the works. This is not an unprecedented move but this analyst says this is just one of a series of moves by the central banks. He says liquidity is the lifeblood of global credit markets and as powerful as the central banks are, they can’t simply keep coming to the rescue indefinitely. He does think their moves have helped though, even though they haven’t solved the problem. So how bad is it? this is the world financial crisis since the beginning of the Great Depression. This analyst applauds today’s actions by the central banks but the current crisis has to run its course. But more government action might be on the way, and the U.S. Treasury is reportedly embracing the idea.

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