Coordinated interest rate cuts by central banks worldwide to stop breakdown in financial markets

Following a bloody Tuesday on Wall Street, in which the Dow Jones Industrial Average dropped more than 500 points, over 5 percent of its value, Middle Eastern markets also collapsed today, with Egypt’s main index falling 16 percent and Saudi Arabia’ s falling over 8 percent.

Japanese markets fell over 9 percent in early trading, and Hong Kong’s main index fell over 8 percent. Markets in UK, France, and Germany all suffered heavy losses as well.

Great Britain also announced a rescue plan the Financial Times says amounts to a part-nationalization of the country’s banks.

In response to the growing crisis, the U.S. Federal Reserve, Bank of England, European Central Bank, and other major central banks all cut interest rates this morning in a coordinated move.

Read full story.


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