Major central banks swept in to calm credit markets spooked by mounting losses on Thursday, with the European Central Bank injecting record amounts of cash to prevent the financial system from seizing up.President George W. Bush also sought to calm fears that a credit market squeeze would shake economic growth, telling a news conference both the global and U.S. economy were strong.
“I’m told there is enough liquidity in the system to enable markets to correct,” Bush said.
The Bank of Canada said it was in contact with other central banks on the global situation and stood ready to add money as needed.
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