Credit Crunch In U.S. Upends Global Markets
Fed, European Banks Add Funds as Dow Tumbles 387
Washington Post Staff Writers
Friday, August 10, 2007; Page A01
NEW YORK, Aug. 9 — The turmoil in the U.S. credit markets turned global Thursday, prompting central banks in Europe and the United States to pump more than $150 billion into the financial system to keep it operating smoothly.
U.S. stocks suffered their second-worst decline of the year as the cost of borrowing for corporations continued to rise and some investors urged policymakers to help.
Financial markets that are free to operate always save themselves from too much optimism or pessimism. Five years of all-too-easy credit now being ‘adjusted.’ Unfortunately, 5 million homeowners will also pay by losing their homes, but lessons are universal and apply to the foolish as well as the greedy.