Hoping to prevent a sell-off, policymakers in industrialized nations pledge to take 'all measures' to support financial stability, and Europe's central bank says it will buy euro-zone government bonds. Policymakers of the Group of 7 industrialized nations sought to head off another panic, pledging Sunday to "take all necessary measures to support financial stability and growth."
The European Central Bank announced Sunday that it would jump into the markets to buy euro-zone government bonds, hoping to stave off selling Monday by frightened investors.
Treasury Secretary Timothy F. Geithner, who had been rumored to be getting ready to leave the Obama administration, assured the White House that he would stay on to help guide economic policy.
But markets were dubious about how much more governments and central banks could do, after nearly three years of attempts to buttress the global economy against another downturn. Stock markets fell sharply in Asia early Monday, while gold, a classic place to hide in times of turmoil, soared to a record high, nearing $1,700 an ounce.
"There is too much that feels reminiscent of 2008," said economist Diane Swonk at Mesirow Financial in Chicago.
http://www.latimes.com/business/la-fi-markets-economy-20110808,0,7177970.story
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