Central Banks Scramble to Feed Cash Into Markets

Biz slows as bailout talks stall
By Rob Quinn,  Newser Staff
Posted Sep 26, 2008 7:00 AM CDT
City workers walk across London Bridge toward the financial center of London. European central banks have pumped billions more in short-term credit into the financial system.   (AP Photo/Sang Tan)
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(Newser) – The world's central banks are frantically spraying money into the economy to prevent it from seizing up as the US bailout package stalls and confidence plummets, Reuters reports. The holdup in Washington has made edgy commercial banks even more inclined to hoard cash and not lend to each other—leaving central banks with little choice but to step in.

The US Federal Reserve, the Bank of England, European Central Bank and Swiss National Bank are all involved, the BBC reports. The benchmark LIBOR interbank rate has leaped 30 points—its steepest rise since 1999.