US saves the banks

Trichet hails moves to save investment funds

22 September 2008 - Issue : 800

Source: The European Weekly

It wasn’t nuclear war, but words like “meltdown,” were being tossed around with fears of a collapse of capitalism and world economies. After the near-bankruptcy of AIG, the world’s largest insurer, was staved off by a last-minute USD 85 billion bail-out from the US government, Washington stepped in and said it was planning an even bigger one: a USD 500-800 million of American banks on the precipice of doing under from the weight of nearly two million possible home foreclosures in the aftermath of the sub-prime lending practices, loaning money to people who couldn’t pay it back. more...

G7 countries also pledge to safeguard financial system.

I hope s1 can help me summarize or explain more on what was happening, the crisis, the effectiveness of this cash injection...