The True Magic of Markets

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.
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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.


* For more in-depth articles from Jim on Business and Economy, check out Opinion-Columns.com

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