What is the plural of “crisis”?
It seems like 2008 is becoming the year of global crisis. First we were faced with the worldwide food crisis, swiftly followed by, what now seems to be, a collapse of major financial institutions.
But it might not stop here. As FAO, the UN Food and Agriculture Organisation, calculated the cost to deal with the current food crisis at US$30 billion per year, donors stepped up their financial support.
But that was before the current financial crisis. At this moment, the governments worldwide concentrate their financial resources in keeping their banks and financial institutions afloat:
* The Belgian, French and Luxembourg governments put in US$9 billion to keep Dexia afloat.
* Previously Netherlands, Belgium and Luxembourg put up US$16.1 billion to save the Fortis bank.
* Britain is working on a US$87.7 billion bank recapitalization concentrating on Barclays, HSBC and the Bank of Scotland.
* Spain announced a US$40.9 billion fund to buy up bank assets and maintain liquidity
* Sweden is given Iceland’s biggest bank, Kaupthing, an emergency loan worth up US$702 million) to help keep it afloat.
* Germany has thrown a US$50 billion lifeline to struggling lender Hypo Real Estate.
* Italy is about to set up a rescue fund close to US$30 billion for the banking industry.
* Canada gave a US$25 billion “backstop” for there banks.
* Russia pledged to boost liquidity by more than US$100bn, on top of a US$5.4 billion loan to Iceland
* And of course we all know about the $700 billion monster US bailout
» Read more: After the Global Financial Crisis Comes the Global Humanitarian Crisis?