Markets: Keeping the Bears at Bay

Liquidity moves are only short-term fixes. Policymakers and investors need more informationand fastbefore the credit crisis can be solved

For a moment there, it was looking like a classic financial crisis: First, fear from the spreading subprime loan mess, then panic, as investors tried bail out en masse. "If enough people decide this is a global meltdown, they can make it happen," says Paolo Pasquariello, a professor at University of Michigan's Ross School of Business who studies financial crises. "The Fed is trying to prevent a self-fulfilling prophecy from taking place."

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