Baja Real Estate & Economy News CNN) -- The leaders of Europe's biggest economies followed Britain's lead Monday and announced huge bailouts for the banking sectors.
In televised addresses German Chancellor Angela Merkel and French President Nicolas Sarkozy outlined plans which will see more than a trillion dollars pumped into the banking sector.
Sharemarkets in the United States, Europe and Asia recorded big bounces Monday as world leaders competed to pump more money into the ailing bank sector. The Dow Jones opened more than 400 points up after gains of up to 10 percent in Europe and Asia.
Markets were further buoyed when five central banks, including the Federal Reserve, European Central Bank, Bank of England and Swiss National Bank, said they would provide unlimited U.S. dollar funds to financial institutions.
Merkel outlined a plan which could see the German government provide $536.7 billion in guarantees for banks and as much as $107.3 billion for recapitalization.
Sarkozy said his government was ready to spend up to $490 billion on its bank rescue plan.
Sarkozy said the money included $436 billion to guarantee bank refinancing and another $54 billion for a government-backed financing vehicle to provide banks with the capital they need. The figure was a maximum, which may not be reached if the market started functioning normally.
The world's major economic powers have been forced into action after weeks of turmoil on financial markets saw trillions wiped off the value of stocks. Most troubling has been the collapse in confidence and supply of liquidity in major banks burdened by unknown amounts of bad debs related to sub-prime mortgages.
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CNN) -- The leaders of Europe's biggest economies followed Britain's lead Monday and announced huge bailouts for the banking sectors.
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