Governments Struggle to Stem Financial Crisis - Governments Struggle: Spreading Crisis
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SPREADING CRISIS
There were signs that the crisis was biting deeper across the world.
-- South Korea said it would dip into the world's sixth-largest foreign exchange reserves to help with loans.
-- Stock markets crumbled and credit conditions tightened in the
Gulf, a boom area for investors over the past few years as a result of
an influx of oil money.
-- Bankers in Pakistan called for urgent central bank action to stop
the liquidity crunch putting banks in jeopardy as overnight call rates
closed between 25 and 28 percent.
(Additional reporting from Milan, Paris, Frankfurt, Brussels,
Luxembourg, New York, Washington, Sydney, Seoul, Beijing, Stockholm,
Hanoi, Dubai, Karachi)
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