December 12, 2007
Econ Watch: Like Lancing A Boil...
Investors were relieved this morning after the Federal Reserve announced it would be working with four other central banks to correct the global liquidity crisis.
The Dow tanked yesterday after the Fed's cautious decision to cut the benchmark funds rate by a quarter-point, instead of the more dramatic half-point some investors had been hoping for. The deal announced today includes the Bank of England, Bank of Canada, European Central Bank and the Swiss National Bank.
The banks will auction short-term funds in order to reinfuse markets with much-needed cash. As of 10:06 a.m., the Dow had rebounded 195 points.
The Financial Times and MarketWatch have more details.
