Central banks around the world yesterday (Wednesday) announced a coordinated reduction of their respective interest rates in a bid to restore investor confidence and put an end to the worst market rout since the Depression era. However, analysts and investors alike are skeptical that even the largest coordinated effort by central banks since Sept. 11 will be enough to save the economy from a severe recession.

Major indices around the world plunged yesterday (Monday), as the credit crisis picked up momentum in Europe and markets in Asia began bracing for a deep recessionary environment in the West.

The European Central Bank (ECB) yesterday (Thursday) held its key interest rate steady at 4.25%, but ECB President Jean-Claude Trichet struck a much less hawkish tone in announcing the decision and may be forced to cut rates before year-end to revive the Eurozone’s shrinking economy.

In a move that underscores the potential of China’s auto market - as well as the viability of so-called “green” technology - investing guru Warren Buffett’s MidAmerican Energy Holding Co. will pay roughly $230 million for a 10% stake in BYD Co. Ltd., a Chinese producer of both cars and specialized batteries.

An insurrection among Republicans in the House of Representatives Friday torpedoed any chance that the Bush administration’s planned $700 billion plan would pass expeditiously, as members of the House refused to back U.S. Treasury Secretary Paulson’s measures and offered up their own plan to solve the credit crisis – a plan they say does not cost the American taxpayer.