Central banks launch $300 billion assault on credit crisis

0 Comments | AFP, September, 2008

NEW YORK (AFP) — Central banks around the world on Thursday threw more than 300 billion dollars into the fight against the credit crisis as speculation grew over Wall Street legend Morgan Stanley and a top British bank was forced into a merger.

The US Federal Reserve led a desperate operation to douse the financial firestorm, putting up an extra 180 billion dollars to relieve "elevated pressures" in global markets amid mounting political calls for decisive action to end the chaos.

But the panic drove heavy stocks falls in Asia, a slump in US Treasury bond yields and a leap in the gold price as investors sought a safe haven. The euro rose to a two week high of 1.45 against the dollar.

Central banks have now spent more than 600 billion dollars this week to...