To better understand why central banks around the world today said they would "inject liquidity" into the global markets, you might imagine the global economy as a highway
The Federal Reserve and other central banks announced today they were teaming up to increase liquidity in the global economy. What does this mean, and will it actually help the European debt crisis?
Six central banks, led by the U.S. Federal Reserve, have announced a plan to inject dollars into the life support system keeping European banks alive. The move was meant to restore confidence in the global financial system.
There's been a lot of talk recently about the need to ring-fence certain economies in Europe. These aren't the economies that have defaulted or been bailed out; these are the economies that are too big to fail. Italy is the most glaring example.
What would a doomsday scenario in Europe look like? The Occupy movement has led protesters to take over a UBS building in London's financial district. In China, the government has put a ban on advertisements during primetime TV shows. And American Airlines flies towards… bankruptcy.
Last week marked more bad news for economies across Europe, including Germany. If more countries follow suit this week, the crisis could reach its threshold
