Financial markets zigzagged Thursday as investors wrestled with their fears about a banking system crippled by mounting distrust and the fallout from years of reckless lending practices. Investors shuttled between the safety of Treasury bills and gold and the bargains posed by stocks that have been pounded lower.
Investors initially appeared somewhat relieved and even did some moderate buying of stocks after the Federal Reserve and other major central banks acted in concert to inject as much as $180 billion into global money markets. The moves were an attempt to keep the credit crisis from worsening; the Fed added another $55 billion in overnight loans Thursday.
But Wall Street, which has swung sharply all week, turned lower at midday and then fluctuated widely as investors were trying determine how to proceed in what is looking to be the most troubling period for the world's financial system in most investors' memory.
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