Central banks step in as bail-out fears mountNow, the Big D.C. Bustup may be nothing more than puppet theater for the edification of the rubes (us). It may be that the idea is to ratchet up the fear; the WaMu failure/seizure would serve admirably as one part of the set dressing in the Theater of Money Terror. That proves nothing, of course; with our supervisors being complete strangers to truth, and the corporate, complicit, etiolated remnants of the press being little more than our supervisors' publicists, we're reduced to guessing. It may be that the Great Financiers will be somewhat delayed in starting the pumps; it's even (faintly) possible that they won't get it done at all. I still think they will. If I'm wrong, I'll be glad -- oh, very glad! -- to say so.
By Norma Cohen, Economics Correspondent
The Bank of England moved on Friday to inject longer term cash into money markets as part of a co-ordinated effort with the US Federal Reserve, the European Central Bank and the Swiss National Bank.
The intervention came after White House talks over a $700bn bailout for the US financial system broke up late on Thursday without agreement.
We shall see.