10-07-2008, 02:08 AM
<b>Europe governments go their own way on crisis</b>
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->"I think at this point (a coordinated cut is) quite likely with the current spread of problems at full strength on the European financial system," said Luca Cazzulani, a strategist with UniCredit in Milan.
So far, the banks have continued to flood the money markets with additional liquidity. On Monday, the ECB injected another $50 billion into money markets while the BoE added another $10 billion.
Additionally, the Fed said that 28-day and 84-day cash loans being made available to banks will be boosted to $150 billion each, effective Monday. Those increases will eventually bring the amounts outstanding under the program to $600 billion.
EU finance ministers have an opportunity to discuss the crisis sweeping the Continent as they sit down for two days of talks in Luxembourg.
"This is a very serious situation and one that needs to be addressed ... but it's true that there is not one single magic bullet that will solve this," said EU spokesman Johannes Laitenberger.
The latest attempt at finding a common response came after a weekend commitment by Europe's four leading economic powers â Germany, France, Britain and Italy â fell apart when Merkel announced Sunday that all 568 billion euros ($786 billion) worth of private deposits held in Germany would be guaranteed alongside a new 50 billion euros ($69 billion) bailout package for Hypo Real Estate AG, Germany's second-biggest mortgage lender. <!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->"I think at this point (a coordinated cut is) quite likely with the current spread of problems at full strength on the European financial system," said Luca Cazzulani, a strategist with UniCredit in Milan.
So far, the banks have continued to flood the money markets with additional liquidity. On Monday, the ECB injected another $50 billion into money markets while the BoE added another $10 billion.
Additionally, the Fed said that 28-day and 84-day cash loans being made available to banks will be boosted to $150 billion each, effective Monday. Those increases will eventually bring the amounts outstanding under the program to $600 billion.
EU finance ministers have an opportunity to discuss the crisis sweeping the Continent as they sit down for two days of talks in Luxembourg.
"This is a very serious situation and one that needs to be addressed ... but it's true that there is not one single magic bullet that will solve this," said EU spokesman Johannes Laitenberger.
The latest attempt at finding a common response came after a weekend commitment by Europe's four leading economic powers â Germany, France, Britain and Italy â fell apart when Merkel announced Sunday that all 568 billion euros ($786 billion) worth of private deposits held in Germany would be guaranteed alongside a new 50 billion euros ($69 billion) bailout package for Hypo Real Estate AG, Germany's second-biggest mortgage lender. <!--QuoteEnd--><!--QuoteEEnd-->