Understanding the global crisis

Here are some great news stories that piece together what's been happening globally and how the dominos started falling.

Fed, ECB, Central Banks Cut Rates in Coordinated Move ... The Fed, ECB, Bank of England, Bank of Canada and Sweden's Riksbank each reduced their benchmark rates by half a percentage point. The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. China's central bank separately cut its key rate 0.27 percentage point.... http://www.bloomberg.com/apps/news?pid=20601087&sid=aKj1Uvn3ofpo&refer=home

Agency’s ’04 Rule Let Banks Pile Up New Debt ... Many events in Washington, on Wall Street and elsewhere around the country have led to what has been called the most serious financial crisis since the 1930s. But decisions made at a brief meeting on April 28, 2004, explain why the problems could spin out of control. The agency’s failure to follow through on those decisions also explains why Washington regulators did not see what was coming.

On that bright spring afternoon, the five members of the Securities and Exchange Commission met in a basement hearing room to consider an urgent plea by the big investment banks... http://www.nytimes.com/2008/10/03/business/03sec.html?ei=5070&emc=eta1

Pressured to Take More Risk, Fannie Reached Tipping Point ... An inside account of the critical juncture when Fannie Mae’s new chief executive, under pressure from Wall Street firms, Congress and company shareholders, took additional risks that pushed his company, and, in turn, a large part of the nation’s financial health, to the brink.... http://www.nytimes.com/2008/10/05/business/05fannie.html?pagewanted=4&em

Swedish Spoken Here ...… Even though the dollar has strengthened a bit lately, we are going to need foreigners and sovereign wealth funds from China, Asia, Europe and the Middle East more than ever to survive this crisis — and they are going to need us to be healthy as well. In the process, we are going to become even more intertwined and dependent on the rest of the world.... http://www.nytimes.com/2008/10/05/opinion/05friedman.html?em