This week the US government as well as other world banks made a coordinated effort to show investors that they are willing to work together to keep the financial market up and running. All have lowered their interest rates by a half percentage point to get credit flowing again and hopefully restore confidence in the world’s financial markets again. By working together to show cohesion in these tough economic times the banks are hoping the fear and skepticism which is prompting investors to sell their stocks in all the world markets will subside and restore confidence that now is actually the time to be buying into the strongest companies in each country.

At this point the markets in most countries are still not showing any confidence and the leaders of many of them are meeting with the President of the US in the States to discuss other plans and options to keep the economies of these countries from getting any worse than they already are. At this point even a large loan company is choosing to stay back and see how investors will react before they opt to lend any more funds they have on hand.

As the current economic crisis has now spread to include the Asian markets the government here in the UK is taking steps to ensure that the crisis does not get as bad in this country as it has in the US by taking steps much sooner. One of the latest measures to be taken is the £50 billion bank bailout to shore up the banks in which the citizens of this country have their money placed. By guaranteeing loans and securing the future of the banks will provide the strength the banks need to lend money to each other and keep the UK finance system in the country moving along unlike the US where it has gone stagnant since lenders are too afraid to part with the money they have on hand.

Of course many citizens are wondering why the government is doing this since the US bailout is not shoring up their financial sector at this point and time. Of course the big difference in the plans between the countries is in the US the government is buying the bad loans which are weighing down the lenders while in the UK the bail out is actually buying parts of the banks themselves. Confidence is high in the UK plan and there is no opposition to the plan as there was in the US plan.