The euphemistically termed "meltdown" in the financial world is really a crisis of enormous proportions.
"The world's central banks launched a large coordinated attack against the widening global financial crisis, lowering short-term interest rates in unison. The emergency action, which involved the Fed, the European Central Bank, the Bank of England and others, is a sign that fears that the financial crisis could cripple the global economy are spreading rapidly" - Wall Street Journal
"Fed Can't Stop the Bleeding. Global Markets Remain Strained" - Fox News
"The US treasury secretary has warned some banks will still fail despite the $700bn government rescue package to shore up the financial system. The UK government has announced a package of measures aimed at rescuing the banking system that makes available £400bn ($692bn) of fresh money - BBC News
"Fed can't save stocks. Wall Street ends a volatile session with losses as investors welcome emergency rate cut but remain wary" - CNN News
"Market turmoil continues despite rates cut. IMF says global economy faces a painful recovery" - France 24 International News
"China cuts rates to ward off slowdown. IMF: World economy to slow sharply, led by US" - China Daily
"Economic Crisis will not be televised. Elite Nightclubs Empty as Crisis Hits Oligarchs" - The Moscow Times
"Blame bad rules, not capitalism" - The Jerusalem Post
These were the headlines splashed across the internet on October 8, 2008.
The harsh reality is that despite concerted and co-ordinated efforts by governments around the world to stabilize the situation, confidence in the global financial system has been smashed. I think it's time for everyone to take a step back from the clear panic in the stock markets, take cognisense that the credit markets do not respond overnight, and give the system a chance to respond to the drastic measures taken by governments around the world.
Remember: "This too shall pass."
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