Central banks worldwide are intervening massively in the markets. The Russian stock market has been closed for several days after precipitous declines. China is also propping up their cratering stock market. Britain has banned short selling on some financial stocks, the US may do the same. The Fed and Treasury plan a massive bailout agency akin to RTC.
Dunno. This doesn’t sound like panic to me. More like something unholy has broken loose from its chains and central banks are desperately trying to kill it before it wreaks more destruction.
Some financial blogs are outraged that the supposed free market US government is intervening. Could it be a devious plot to save the investment banks? I have a different theory, especially since this is happening worldwide, not just in the US. The central banks are terrified. And are doing whatever they think needs to be done to stave off catastrophe.