Monday, August 27, 2007
Central banks are trying to save the system…. will they succeed?
By Michael R. Sesit Bloomberg News Published: August 26, 2007 PARIS: 'This financial crisis is far from over," says Rob Carnell, London-based chief international economist at ING Wholesale Banking. "U.S. house prices have further to fall; delinquency rates have further to rise; and subprime mortgage-backed assets will likely fall further." The world's major central banks face four challenges as they strive to prevent the global financial system from unraveling and growth from stagnating: Acting in a concerted manner; improving transparency; deciding who gets bailed out and who doesn't; and making sure whatever monetary medicine is administered doesn't come with destabilizing side effects.