After two days of outright panic on markets in Bombay and Hong Kong and across Europe, the US Federal Reserve Bank jammed through a huge rate cut. President Bush and Henry Paulson and Congressional leaders hustled to a big photo op, talked big stimulus, and caught a break.
But this isn't over. The Dow Jones just had its worst 14 trading days ever. The Asian economies people hoped would take up the slack haven't yet.
This hour, On Point: global market mayhem and how and where the meltdown ends.Guests:
Jeffrey Frankel, professor of capital formation and growth at Harvard's Kennedy School, director of the Program in International Finance and Macroeconomics at the National Bureau of Economic Research, former member Council of Economic Advisers under President Bill Clinton.
Robert Kuttner, co-founder and co-editor of The American Prospect, co-founder of the Economic Policy Institute.
Philip Coggan, capital markets editor at The Economist, former investments editor at the Financial Times.
Amit Seru, Assistant Professor of Finance at the University of Chicago Graduate School of Business.
This program aired on January 23, 2008.