Monday, October 13, 2008

Cuts in Interest Rates Fail to Rescue Global Markets

Nothing has worked on to help global markets from falling. After the fall of US markets from September 20th, the global markets were highly affected. There was a big financial crisis going all over the world. No bailouts or low interest cuts seemed to be working out at this point of time. US economic crisis is sending shock waves all around the world. US stocks were highly volatile and global markets took a plunge in most of the regions. Investors at first had warmed to a one-half percentage point cut in interest rates by the US Federal Reserve, the European Central Bank, the Bank of England and other key central banks around the world, the first co-ordinate move since the September 11, 2001, attacks. The price of Government debt, stocks and crude oil’s wild swing, lasted their confidence only for a short while. Keeping investors on edge were credit markets, which remained tight despite the coordinated effort to pry them open. Now, US has to work on some other strategy to help economy from crisis.