Global meltdown

The National, United Arab Emirates
Credit crisis turns into global meltdown

October 08. 2008

"The European Central Bank has dramatically changed its tune over the last twenty-four hours as the credit freeze worsens, acknowledging for the first time that the world faces the gravest crisis since the Great Depression," The Daily Telegraph reported.

"A string of governors from across the eurozone have today issued grim warnings in what seemed a coordinated move to prepare the markets for interest rate cuts, perhaps within days.

"Guy Quaden, Belgium's ECB member, said the violent storm ravaging Europe's banking system was far from over. 'This is the worst financial crisis since the Thirties,' he told the Belgian parliament.

"Miguel Angel Ordonez, Spain's ECB governor, echoed the warnings in testimony to the Spanish Cortes, acknowledging that the world now faces a crisis of 'enormous proportions.'

"In a clear rejection of the ECB's controversial 'go-it-alone' policy on monetary policy, he called for joint action with the US Federal Reserve to nurse the credit markets back to life.

" 'We've got to get together on both sides of the Atlantic. It is absolutely essential to co-ordinate everything, including monetary policy,' he said." ……….....

http://www.thenational.ae/article/20081008/GLOBALBRIEFING/423351387/-1/ART


Global banks unite to stop meltdown
Sydney Morning Herald

October 9, 2008

THE US Federal Reserve and six of the world's other major central banks slashed interest rates by half a percentage point last night in an attempt to prevent a global economic meltdown.

The Fed reduced its key interest rate from 2 per cent to 1.5 per cent, while in Europe, the Bank of England cut its rate by 50 basis points to 4.5 per cent and the European Central Bank sliced its rate to 3.75 per cent.

Other banks to join the global rescue plan include the central banks of Canada, Sweden and Switzerland.

China also cut its key interest rates on Wednesday for a second time in less than a month to stimulate slowing economic growth amid the credit crisis……………

http://business.smh.com.au/business/global-banks-unite-to-stop-meltdown-20081009-4wvr.html




The global meltdown - how it is affecting us
New Zealand Herald

Tuesday Oct 07, 2008

The New Zealand dollar fell to a two-year low of US62c overnight as global markets slumped as much as 9 per cent and appetites for risky commodity driven currencies such as ours and Australia's evaporated.

The New Zealand stock market is expected to open 3-4 per cent weaker as international investors look to sell and repatriate cash home……………..

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10536208