Bear Stearns falters; Bush has faith

Last Modified: 14 Mar 2008
By: Jonathan Rugman

President Bush tries to bolster faith in the economy as Bear Stearns fights off bankruptcy.

State of the US economy

As America heads for the kind of economic crisis not seen since the depression of the thirties the impact is being felt around the world.

Shares are plunging and the dollar has reached a record low against the euro.

So how long is the turmoil likely to continue and with talk of a huge interest rate cut by the Fed next week, is a radical intervention on the cards?

Faisal Islam explains.

The iconic bank has been forced to seek emergency funding to help it out of a credit crisis.

America's fifth largest investment bank has agreed a 28-day loan from JP Morgan, backed by the Federal Reserve, after rumours that it was struggling to fund its day-to-day business.

Bush insisted the 'ingenuity and resolve of the American people' would see it bounce back from hard times.