Concerted action is taken over the global financial crisis | A light at the end of the tunnel? | The Economist

THE dithering has ended. After a week in which the financial system almost ground to a halt, governments of the industrialised world seem at last to have found the right tools to get credit markets moving again. At the weekend and early on Monday October 13th officials in Europe, America and Asia announced unprecedented and comprehensive plans to prop up failing banks, guarantee their loans and flood the world with cash by providing unlimited dollar funds through central banks. At first blush—and in contrast to previous failures after half-hearted efforts—the new plans seem to be working. Stockmarkets rose in Europe and Asia on Monday, although the real sign that the situation is improving will come in the credit markets this week: the spread of Libor over expected central-bank rates, credit-default-swap spreads on banks, and commercial-paper rates.