Central banks around the world may have finally made the right move by coordinating their attempts to inject liquidity into the credit markets. The banks will provide around $250 billion in replacement securities in order to help get the flow moving while the Fed will auction $200 billion of US government bonds and take unwanted mortgage bonds as collateral. The move also comes just after the Fed announced that it would be increasing the size of its "term auction facility" by $140 billion to give companies easier access to credit. These measures could end up saving things like student loans and city bonds that are just beginning to feel the heat.

From The Independent:
Central banks around the world made a second co-ordinated attempt to ease the credit crisis, three months after their first efforts failed to kickstart lending across the financial system. After days of gathering fears that falling mortgage bond prices could trigger a wave of forced selling by highly indebted hedge funds and other investors, the Federal Reserve said that it would lead a global effort to inject around $250bn (£125bn) of replacement securities into the system.