More than $8.5 trillion has disappeared into thin air since the beginning of this year. This calls for greater and more coordinated action. Nothing seems to work to stop the freefall of stocks. Efforts by governments and central banks appear to just give temporary reprieve. However, investors are not buying these.

Finance ministers and central bank governors of the G-7 countries said the current situation calls for urgent action. They have agreed to take decisive action and use all available tools to support systemically important financial institutions and prevent their failure. They also are expected to take steps to unfreeze credit and money markets and ensure that banks and other financial institutions have broad access to liquidity and funding. They said they will ensure that the banks and other major financial intermediaries can raise capital from public as well as private sources, in sufficient amounts to re-establish confidence and permit them to continue lending to households and businesses. It remains to be seen if these promises can bring back investor confidence.

Source: Gulf News