The financial markets throughout the world have reacted favourably to the various rescue packages currently being put in place to deal with the worldwide financial crisis. Share prices in Asia rose by 13% and Sydney by 5%, following on from an 11% rise on Wall Street on Monday.
European governments are putting up €1.7 trillion to protect the continent’s banks through guarantees and other emergency measures. The figures are maximums, which means that the full amount might not actually be spent if the financial crisis eases.
Germany has agreed a bank rescue plan amounting to €500 billion, France €350 billion, Holland has pledged €200 billion, Spain €100 billion and Austria €85 billion.
The UK is injecting up to £37 billion of taxpayers money to buy stakes in Lloyds TSB, The Royal Bank of Scotland and HBOS.