A stern warning came from the International Monetary Fund as world leaders try to come up with a cooperative plan to stop the systemic meltdown of the world financial system. Stock index in the United States has continuously fallen, but other markets in Asia have also suffered as the confidence in the financial market did not recover. Global leaders have urged calm, but U.S. Treasury Secretary Henry Paulson did admit that the current situation is “the most serious and challenging in recent memory.”

The 700 billion dollar bailout plan has not been implemented yet, but Washington reassured that the plan will put in play soon. As world leaders discuss a possible collective action to save the market, the British plan of guaranteeing loans between banks has been a key interest by analysts. Some experts believe that the British plan would give the necessary confidence for the banks to start giving loans again, and increase the credit market. However, no country has announced to adopt such plan as of yet.

Systemic meltdown portends the serious magnitude of the financial crisis, and there is no doubt that the central banks and world governments are working around the clock to rectify the problem.  However, with the Presidential election engulfing the news stream many Americans are giving less attention to these events, and thus many will be in a surprise when the tsunami wave hits their livelihood during the most unexpected moment.

Further Reading: IMF warns of financial meltdown as crisis rages - Reuters