Credit Crunch In U.S. Upends Global Markets
Fed, European Banks Add Funds as Dow Tumbles 387
Washington Post Staff Writers Friday, August 10, 2007; Page A01
NEW YORK, Aug. 9 -- The turmoil in the U.S. credit markets turned global Thursday, prompting central banks in Europe and the United States to pump more than $150 billion into the financial system to keep it operating smoothly.
U.S. stocks suffered their second-worst decline of the year as the cost of borrowing for corporations continued to rise and some investors urged policymakers to help. ____________________________________________________________________
Financial markets that are free to operate always save themselves from too much optimism or pessimism. Five years of all-too-easy credit now being 'adjusted.' Unfortunately, 5 million homeowners will also pay by losing their homes, but lessons are universal and apply to the foolish as well as the greedy.