WASHINGTON - Global markets are still not convinced that the credit crisis is over and jittery investors are selling off stocks as a result.
Despite a huge bailout bill here in the United States and the efforts of financial leaders around the world, there's still no end in sight to the current global economic crisis.
The U.S. government is trying to come up with solutions - starting with the housing market.
Americans may love to take risks, but right now at least, the rest of the world is playing it safe.
Global markets are still not convinced that the credit crisis is over and jittery investors are selling off stocks as a result.
Global stocks dipped to a five-year low today as demand grows for safer bets like government bonds and low-yielding currencies.
"The onset of global recession is hurting investors' sentiment, and the market is set to fall further," Francis Lun of G.M., Fulbright Securities said.
The U.S. is considering guaranteeing home mortgages to ease the financial burden on struggling homeowners.
The plan would urge banks to refinance loans for those facing foreclosure. The bank would then be repaid with up to $40 billion of the bailout.
"We have begun to maximize the opportunities to help as many homeowners as possible while also protecting the taxpayers," Assistant Secretary of Treasury Neel Kashkari said.
Looking for a Remedy
The search for answers about how we got into this mess continues.
In testimony on Capitol Hill yesterday, former Federal Reserve Chairman Alan Greenspan said he made a mistake in believing bank executives could protect their firms' shareholders and equity.
"We at the Federal Reserve had a much better record forecasting than the private sector, but we were wrong quite a good deal of the time," Greenspan said.
Click play to see what Steve Forbes, Chairman and CEO of Forbes, Inc., thinks the credit crisis has done to the U.S. economy. Then following CBN News' Erick Stakelbacks report on the latest on attempts to stop a global recession, watch as CBN News Financial Editor Drew Parkhill gives his analysis on the markets.
In the meantime, investors are trying to get it right - they're hoping for a low in the markets soon.