Wall Street has escaped Black Friday that hit the world's financial markets despite an uneasy start.
The US stock market plummeted 600 points at one point, but recovered to be down marginally just before the close.
As G7 leaders meet to discuss a coordinated approach to deal with the crisis, US President George Bush also tried to ease the growing fears of a global recession insisting they have the tools needed to confront the crisis.
Economist Diane Swonk says governments worldwide have taken unprecedented action.
“We’ve done now more to save the situation than was done in the 1929-1932 period all together.”
President Bush admits times are tough but says the government has the right tools to confront the crisis.
“Our system of credit is frozen which is keeping American businesses from financing their daily transactions and creating uncertainty throughout our economy.”
This uncertainty is leading to anxiety among our people and that is understandable - that anxiety can feed anxiety and that can make it hard to see all that is being done to solve the problem.”
US Treasury Secretary Henry Paulson says the biggest problem has been a lack of confidence in financial institutions and the mortgages they hold.
“We are squarely focused on the immediate need to stabilise our finiancial markets and recognise that our invester confidence is critical to restore liquidiy and enhance the stability of our financial system.