The U.S. Federal Reserve and other central banks teamed up to get hundreds of billions in fresh funds to cash-starved credit markets, allowing financial firms to use home mortgages as collateral.
Stocks surged and bonds fell in reaction to the moves, in a sign that the financial markets saw the plan as a viable remedy to ease a crisis that has threatened world economic growth. The
Dow industrials lurched 250-points higher at the start of trading.
In the latest effort to ease a credit contraction that has disrupted finance and rescued the the world economy from a credit contraction, the Fed, Bank of Canada, Bank of England, European Central Bank and Swiss National Bank announced a series of aggressive measures to boost liquidity.
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