081010-Pressure On G7 Nations

Pressure On G7 Nations

Behind the sturdy columns of the Treasury Department in Washington, finance ministers and central bankers of the world's seven richest democracies are in crisis mode - what else can they do to calm world markets running on fear and panic.

Asian and European stocks are again, day seven, in free fall, tracking the Dow's extraordinary plunge.

Citing a lack of buyers, Paris shut itself down right after it opened.

Group of Seven economies have thrown everything at the system to try to stem the slide - rescuing banks, slashing interest rates - but nothing's worked; investors are still spooked.

Why from Reuters Treasury Editor Nick Edwards.

(SOUNDBITE) (English) NICK EDWARDS, REUTERS TREASURY EDITOR, SAYING:

"It's because markets still don't have what they are looking for, which is a global security blanket. That's what investors need. It's what policymakers keep talking about but as yet there has been no single global policy response. Lots of ad hoc, lots of individual measures but really it's a single, unified self-reinforcing response that investors are looking for."

On the front page of a British broadsheet, an appeal for such action written by Prime Minister Gordon Brown.

"Ground-breaking" is how he describes his move to take a government stake in stricken banks - an 880 billion dollar package that aims to restore trust between banks and get them lending again, to each other and their customers.

Economist David Kern of the British Chambers of Commerce says that and more government intervention is needed.

(SOUNDBITE)(English) DAVID KERN, ECONOMIC ADVISER, BRITISH CHAMBERS OF COMMERCE, SAYING:

"What is important is for the authorities to demonstrate that if that's not enough now more will be forthcoming. At the end of the day, the governments are more powerful than the markets which are testing them."

For now, the balance of power is tipping the way of the free-falling markets.

If the G7 doesn't manage to come up with some impressive, united moves, speculation may move on to how long and deep a global recession will be.

Susan Flory, Reuters

sturdy strongly built or made
plunge - a steep and rapid fall
stem to stop or hinder the spread of (something): to stem the flow of firearms
slashing cut with a sharp quick stroke, gash, wound; reduce, lower; make sharp quick strokes; strongly criticize; create a way by cutting
spook - frighten or scare, and often provoke into a violent action; "The noise spooked the horse"
blanket - anything that covers; "there was a blanket of snow"
broadsheet a newspaper in a large format
stake a strong stick or post, especially a pointed one used as a support or as part of a fence.
stricken - grievously affected especially by disease