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Global financial crisis: stage two.(AGAINST THE CURRENT)

Arena Magazine

| August 01, 2008 | Hinkson, John | COPYRIGHT 2008 Arena Printing and Publications Pty. Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

There was always going to be a second round to the financial crisis that has enveloped global markets over the last nine months. The first stage, which ended in March, was followed by a period of consolidation, often interpreted as a sign that the worst was over. The logic of the first stage was countered by the intervention of Central Banks, especially the US Federal Reserve, ensuring that short-term liquidity was shored up by securing huge amounts of bank debt. Even the investment banks have been brought under the umbrella of the Reserve for the first time.

However the success of the US Reserve strategy may be judged, that first stage was serious enough to ...

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