What’s going on now? It seems the nightmare of last week is not ended.
Despite proposals from France and Italy, the European Union has eschewed any common fiscal approach to the crisis, mainly because Germany refuses to be drawn into a scheme for fear of being burdened with the costs of rescuing non-German banks.
The Fed said in a statement that it would begin to buy large amounts of short-term debt in an effort to stimulate the credit markets, which have all but dried up.
Mr. Bernanke strongly hinted that the Fed would lower interest rates this month in the face of a worsening outlook for the economy and financial markets.