U.S. stocks plunged for the seventh session in a row Thursday. The
closely-watched Dow index fell a stunning seven percent, and other
major indexes posted dramatic drops as well.
European markets closed
earlier with a loss of as much as two-point-five percent.
Investors appear unconvinced that recent moves by authorities worldwide
will be enough to re-start stalled credit markets and avert a global
The massive stock sell-off comes as White House officials said the
United States might buy shares in some of the nation's banks to calm
markets. The plan would inject cash into the country's banking system
in a bid to encourage banks to resume lending.
Earlier Thursday, the head of the International Monetary Fund said the
world is on the brink of a global recession but predicts the economy
will begin to recover by late 2009.
Dominique Strauss-Kahn said nations must work together to avert a
global recession. He says this week's coordinated interest rate cuts
around the world are a good example of the international cooperation
needed to restore faltering economies.
He also said the IMF activated an emergency program Wednesday that
allows the fund to provide loans more easily and quickly to emerging
countries in economic trouble.
The IMF chief made the remarks in Washington D.C., as top officials
from IMF nations and the G-7 industrialized countries are gathering for
meetings on economic issues. U.S. President George Bush is set to meet
with G-7 finance ministers at the White House on Saturday.
World Bank President, Robert Zoellick is urging officials not to forget
poor countries as the world crafts responses to the financial crisis.
Speaking in Washington, he said the crisis is hitting some developing
nations hard because they are already struggling with high food and