No coordinated effort to cut interest rates but a concerted effort to bail out?
Greg:
Check this out,I don't know this is a good idea but if true it should pacify the world marketsI think.
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Tuesday September 22, 2:24 pm Eastern Time
Speculation swirls about G7 emergency fund plan
By Henry Engler
LONDON, Sept 22 (Reuters) - Speculation was mounting in financial markets on Tuesday that world powers were preparing a mutli-billion dollar rescue fund for emerging market nations.
People familiar with the work of the U.S. Treasury and international agencies such as the International Monetary Fund told Reuters a new initiative could be imminent. Crisis-torn Brazil is seen as the key beneficiary of any rescue.
An international monetary source in Washington, speaking on condition of anonymity, said the IMF and Brazil were ''examining options on the policy front,'' but added there had been no request for money.
Britain, which holds the presidency of the Group of Seven industrialised nations, said it was unaware of any plan to create an emergency fund.
Bank of England governor Eddie George is currently in Latin America, site of some of the most intense market carnage.
In London, visiting top U.S. central banker William McDonough declined to comment.
The talk, which has been running for days but has now gained credence in financial circles, is that anywhere between $50 billion and $120 billion could be pooled together to provide funds for ravaged economies such as Brazil........
biz.yahoo.com |
