Central banks ante up
The floundering financial industry gets lifeline from central banks in North America, Asia and Europe.
The $180 billion dollars from big central banks -- led by the U.S. Federal Reserve -- helped restore confidence in the global stock markets. As "The World's" Mathew Bell reports, the concerted action by the U.S. Federal Reserve and five other central banks underline the seriousness of the current financial meltdown.
Taken by itself, the action by the central banks is not unprecedented, but the move is just the latest in a series of interventions, or "liquidity injections," according to Jared Bernstein of the Economic Policy Institute.
Liquidity – another word for cash – sloshing around the financial system is the lifeblood of global credit markets, and as powerful as the world's six central banks are when they act in concert, Bernstein says they simply can not keep coming to the rescue indefinitely: "I don’t think they have too many more arrows in their quiver…".
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