But what happened in previous financial crises, and what are the lessons for today? There have been a growing number of financial crises in the world, according to the International Monetary Fund (IMF).

Among the key lessons of previous major financial crises are:

- Globalisation has increased the frequency and spread of financial crises, but not necessarily their severity
- Early intervention by central banks is more effective in limiting their spread than later moves
- It is difficult to tell at the time whether a financial crisis will have broader economic consequences
- Regulators often cannot keep up with the pace of financial innovation that may trigger a crisis.

THE DOT.COM CRASH, 2000 - During the late 1990s, stock markets became beguiled by the rise of internet companies such as Amazon and AOL, which seemed to be ushering in a new era for the economy, despite the fact that few of the firms actually made a profit. The Fed cut interest rates throughout 2001, lowering rates from 6.25% to 1% to stimulate economic growth.

LONG-TERM CAPITAL MANAGEMENT, 1998 - The collapse of hedge fund Long-Term Capital Market (LTCM) occurred during the final stage of the world financial crisis that began in Asia in 1997 and spread to Russia and Brazil in 1998.

THE CRASH OF 1987 - US stock markets suffered their largest peacetime one-day fall yet on 19 October 1987, when the Dow Jones Industrial Average index of shares in leading US companies dropped 22% and European and Japanese markets followed suit. The losses were triggered by the widespread belief that insider trading and company takeovers on borrowed money were dominating the markets, while the US economy was entering into an economic slowdown.

US SAVINGS AND LOAN SCANDAL, 1985 - US Savings and Loans institutions were local banks which made home loans and took deposits from retail investors, similar to building societies in the UK. By 1985, many of these institutions were all but bankrupt, and a run began on S&L institutions in Ohio and Maryland. The cost of the bail-out eventually totalled about $150bn.

THE CRASH OF 1929 - The Wall Street crash of 1929, "Black Thursday," was an event that sent the US and indeed the global economy into a tailspin, contributing to the Great Depression of the 1930s. After a huge speculative rise in the late 1920s, based partly on the rise of new industries such as radio broadcasting and car making, shares fell by 13% on Thursday, 24 October, and fell by another 11% the following Tuesday, 29 October. By the time the market had reached bottom in 1932, 90% had been wiped off the value of shares. IT TOOK 25 YEARS BEFORE THE DOW JONES INDUSTRIAL AVERAGE RECOVERED TO ITS 1929 LEVEL.

OVEREND & GURNEY, 1866; BARINGS, 1890 - The failure of a key London bank, Overend and Gurney, in 1866 led to a key change in the role of central banks in managing financial crises. As a result, reformers advocated a new role for the Bank of England as the "LENDER OF LAST RESORT" to provide liquidity (cash) to the financial system during crises, in order to prevent a failure of one bank spilling over and affecting all the others ("systemic failure"). The new doctrine was implemented in the Barings Crisis in 1890, when losses by a leading UK bank, Barings, made on its investments in Argentina, were covered by the Bank of England to prevent a systemic collapse of UK banking. Secret negotiations by the Bank and London financiers led to the creation of an £18m rescue fund in November 1890, before the extent of Barings' losses became publicly known.

The rate decline of 0.6 percent in 2006 compared to 2005 was so modest that the increase in the world's population meant there were actually more TB cases globally, the World Health Organization said in its annual report on tuberculosis. And WHO officials cited worrisome trends suggesting that recent progress was stalling, while saying more money is needed to fight TB, WHICH TRAILS ONLY AIDS AS THE WORLD'S LEADING KILLER AMONG INFECTIOUS DISEASES.

By region, AFRICA HAD THE HIGHEST TB RATES WHILE ASIA HAD THE MOST CASES. By nation, India had the most cases, followed by China, Indonesia, South Africa and Nigeria, according to the report based on data from 202 countries and territories. "We're really in a very uncertain situation, so I don't feel happy at all, actually, that it is really getting controlled," Dr. Mario Raviglione, who heads WHO efforts against TB, told reporters in a conference call. "The major concern is that there is a slowdown here, rather than an acceleration, in TB control efforts," Raviglione said.

The data came out a month after another WHO report showed that TB CASES THAT DEFY EXISTING DRUGS WERE OCCURRING GLOBALLY AT THE HIGHEST RATES EVER, WITH NEARLY 490,000 CASES IN 2006. Parts of the former Soviet Union were particularly vulnerable. TB is an infectious bacterial disease typically attacking the lungs. THE EMERGENCE AND SPREAD OF DRUG-RESISTANT GERMS MAKES TREATING IT MUCH HARDER AND COULD MAKE IT EVEN DEADLIER.

The investigative committee said the money was paid as the administration said it was trying to improve the poorly performing power industry. Committee chairman Ndidi Elumelu said the 34 companies were not registered and so did not exist. The panel was established earlier this year to find out what happened to money spent on improving power generation between 1999 and 2007.

President Umaru Yar'Adua has said $10 billion was spent with little sign of improvement to electricity supplies. NIGERIA IS A BIG EXPORTER OF OIL BUT SUFFERS FROM SEVERE ENERGY SHORTAGES WHICH PRODUCE FREQUENT ELECTRICITY CUTS.

Electricity generation remains at a fraction of the amount needed by A COUNTRY OF 140 MILLION PEOPLE. The effect on Nigeria, a regional superpower, has been economically devastating both for businesses and individuals, says the BBC's Alex Last in Lagos. Mr Yar'Adua has promised to declare "a national emergency" on power, but our correspondent says not much has happened yet.

Of the other aims, one was unobtainable because Iraq had no weapons of mass destruction to be destroyed, and the other - bringing democracy to the Middle East - has been indefinitely postponed. More importantly, THE WAR HAS SHOWN THE LIMITS OF AMERICAN POWER. It is clear THE UNITED STATES CAN ONLY MANAGE TO FIGHT TWO SMALL WARS AT A TIME. IRAQ AND AFGHANISTAN HAVE STRETCHED THE US ARMED FORCES ALMOST TO BREAKING POINT. AMERICA AFTER THE INVASION OF IRAQ IS NO LONGER THE SUPERPOWER IT WAS BEFORE.

Now, the American forces are engaged in fighting a rearguard action, winning time during which the long-term decisions can be taken about withdrawal or some form of continuing presence here. Some people will no doubt call this rearguard action a success. Some may even be tempted to call it a victory. Yet at present it is hard to think of it as particularly successful. On Monday, Vice-President Dick Cheney came to Baghdad and talked about "the phenomenal improvement in security". That day more than 60 Iraqis were killed in bomb attacks. None of this feels like a phenomenal improvement in security.

But this is small compared with THE DAMAGE WHICH THE WAR HAS DONE TO AMERICA'S REPUTATION. The US state department finds it much harder nowadays to be taken seriously when it criticises other countries for their use of torture and arbitrary arrest. People the world over have been repelled by things that have been done here: things that are now associated with place-names like Abu Ghraib, Haditha, and Falluja.

ABOVE ALL, WE HAVE SEEN HOW HARD IT IS FOR THE AMERICANS TO DEAL WITH A FEW THOUSAND LIGHTLY ARMED VOLUNTEERS. Germany's 19th-Century Chancellor, Otto von Bismarck, said that "GREAT POWERS HAD TO BE VERY CAREFUL WHEN THEY PUT THEIR MILITARY STRENGTH TO THE TEST." Unless they are overwhelmingly successful, he meant, the perception will be that they have been defeated.

IN SPITE OF THE NEW SUCCESSES ON THE GROUND HERE, THAT IS THE LONG-TERM DANGER AMERICA FACES.

Environmental groups called the process crazy and said it involved thousands of unnecessary and wasteful "food miles". Vicki Hird of Friends of the Earth said: "Consumers thinking they are buying greener, local and Scottish are actually buying pretty travel-sick chicken. How many more unnecessary food miles do Tesco's centralised, mass-produced systems result in?"

Richard Watts, campaign director at the pressure group Sustain, said: "It is an illogical thing to do and the carbon emissions that result will be extremely damaging to the environment. Considering the significant contribution of the food industry to the UK's greenhouse gas emissions, this kind of practice should be the first to go if companies such as Tesco are serious about their overall responsibility in relation to the climate change crisis."

Green campaigners have called on consumers to cut down on the food miles required to ship global products to Britain, including exotic fruit and vegetables. But Tesco said it was forced to send its chicken portions on the long-distance journey because of the closure of a packaging plant in Scotland.

Essential family bills for petrol and staple foods are rising at their fastest pace since records began. Official figures yesterday showed increases of up to 40 per cent over the past year - with the prospect of more to come. The new figures from the Office for National Statistics revealed the scale of the price increases on basic items.

Milk, cheese and eggs are up an average 17.6 per cent over the past year. Oils and fats such as butter are up 15.9 per cent and cereals 7.9 per cent. The biggest rise has been on fuel, with motorists suffering an increase of 20.4 per cent over the last year, pushed up by record oil prices. Since the start of the year, five of the UK's six giant energy companies have hit customers with inflation-busting price rises in the depths of winter. For British Gas's 15.8million customers, there were rises of 15 per cent for gas and up to 19 per cent for electricity. At Npower, electricity prices jumped by up to 27 per cent.

All these increases are the biggest logged by the ONS since records began in 1997. It means a typical family of four must spend an extra £572 a year to buy the same items on their weekly shop. The rises are being fuelled by massive increases in commodity prices, such as wheat, as well as higher global demand from countries such as China.

CHILDREN WITH "CHAOTIC" HOME LIVES TURN UP AT SCHOOL TOO TROUBLED TO LEARN, wrecking their prospects of success in exams, they said. Growing numbers are being brought up in splintered families by mothers with children by different fathers, leading to behaviour and mental health problems including eating disorders and suicidal thoughts, a teachers' conference heard. THEY ARE MORE LIKELY TO LEAD "DYSFUNCTIONAL" LIVES THEMSELVES, CREATING A "TOXIC CIRCLE" THAT NO AMOUNT OF INVESTMENT OR INITIATIVES DIRECTED AT SCHOOLS CAN REVERSE.

Members of the Association of Teachers and Lecturers demanded a proper recognition of the impact of family breakdown on education and CALLED ON MINISTERS TO DO MORE TO PROMOTE MARRIAGE. They said research from around the world showed that lack of stability at home can hamper children's learning. Secondary school teacher Phil Whalley told the ATL's annual conference in Torquay that 40 TO 50 PER CENT OF YOUNGSTERS BORN IN BRITAIN THIS YEAR FACE A GREATER RISK OF FAILING AT SCHOOL BECAUSE THEY WILL BE BORN TO UNMARRIED COUPLES OR SINGLE PARENTS.

Mr Whalley, a teacher at Hardenhuish School in Wiltshire, said: "We all know from professional experience the extent to which chaotic home lives and family breakdowns are damaging the educational prospects of children in this country. We know that no matter how brilliant the lesson, or how much has been spent on rebuilding the school, if a child comes in angry and in emotional turmoil because of their family life they will not learn. FAMILY STABILITY, OR THE LACK OF IT, IS AN IMPORTANT DETERMINANT OF A CHILD'S EDUCATION OUTCOMES."

"We need to blaze a trail in between (curbing inflation and nurturing economic growth)," Wen said after the conclusion of the first session of the 11th National People's Congress, the parliament. Wen was reappointed China's primer minister on Sunday, after his administration attained an eye-catching annual double-digit GDP growth for China in his first term. However, the Chinese premier admitted that it would be challenging to control inflation this year to within the projected 4.8 percent target. China's inflation ran as high as 8.7 per cent in February, partially because the severe snow storms - the worst seen in five decades - battered south China and handicapped food supplies.

Wen's administration has set "two prevents" when mapping out this year's economic policies: to prevent the fast-growing economy from being overheated, and keep structural price rises from turning into significant inflation. Facing a big squad of press corps at the Great Hall of the People in Beijing, Wen noted the worsening conditions brought about by the US subprime debacle, which has spawned a free fall in the value of the US dollar, slammed stock markets worldwide and fed into a surge in oil prices.

"I am closely watching and feel deeply worried about the global economic situation, especially the US economy," Wen said. "What concerns me is the continuous depreciation of the US dollar and when the dollar will hit bottom."

In an emotional speech, delivered in German, Merkel said her country would always be committed to Israel's security, particularly in light of growing threats from Iran. "Especially in this place, I emphasize: Every German government and every chancellor before me was committed to the special responsibility Germany has for Israel's security," she said. "This historic responsibility is part of my country's fundamental policy. It means that for me, as a German chancellor, Israel's security is non-negotiable," she added.

Merkel grew up in former East Germany, the daughter of a pastor. In her speech, she referred to her former country's refusal to take responsibility for the Holocaust; until unification in 1990, that task was shouldered by West Germany alone. She said Communist East Germany considered the Nazi past as a West German problem. "It took 40 years until the entire Germany ... acknowledged its responsibility for history and for the state of Israel," she said.

Merkel expressed support for a two-state solution to the Israeli-Palestinian conflict, but also said Israel does not need unsolicited advice from outsiders. Merkel is not meeting Palestinian leaders during her current trip to Israel.

The Federal Open Market Committee voted 8 to 2 in favour of the reduction to the federal funds rate to 2.25 per cent, the lowest rate in five years. The central bank also trimmed its discount rate for direct loans to banks, and now available to some securities firms, by a similar amount, bringing the cost of borrowing down to 2.5 per cent. The Fed said: "Today's policy action, combined with those taken earlier, including measures to foster market liquidity, should help to promote moderate growth over time and to mitigate the risks to economic activity."

The Fed made the cut as Henry Paulson, the US Treasury Secretary, finally admitted the economy had declined sharply, but he refused to label the situation as a recession.

Mr Paulson said: "We know we are in a sharp downclimb and there is no doubt that the American people know that the economy has turned down sharply. So to me, much less important is the label that is placed on it today. Much more important is what we do about it."

So she decided to perform her own aspartame experiment - with 108 rats for 2 years and 8 months. Daily, she fed some of the rats the equivalent, for their body weight, of two-thirds the aspartame contained in 8-oz of diet soda. Eleven of the females who took aspartame - 37 percent - developed tumors, some of massive size.

The fact that aspartame is endorsed by the U.S. FDA as a safe product, and is recommended by many doctors as a good alternative sweetener in lieu of sugar is enough to make you go speechless with rage. Sold commercially under names like NutraSweet, Equal, Spoonful, Equal-Measure and Canderel, aspartame can be found in more than 6,000 products. It's even found in vitamins, as well as prescription and over the-counter drugs such as Alka Seltzer Plus, and some Tylenol medications.

The Aspartame Danger is NO MYTH! Contrary to what the PR machine says, there is overwhelming scientific evidence that aspartame is exactly as dangerous as we say it is, and whenever you root around to see who gave aspartame its latest "clean bill of health," invariably you will find ties to the industry. DOES IT MAKE SENSE THAT WHAT WAS ONCE LISTED BY THE PENTAGON AS A BIOCHEMICAL WARFARE AGENT IS NOW AN INTEGRAL PART OF YOUR MODERN DIET?

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The FTSE jumped almost 100 points in early trading today but even that was not enough to make up for yesterday's heavy losses. Investment banks Goldman Sachs and Lehman Brothers are both due to report their earnings later on today and the U.S Fed is expected to cut interest rates by as much as one per cent. Lehman Brothers' shares closed 19 percent lower last night ahead on speculation it was vulnerable to the credit crisis.

Yesterday both George Bush and Gordon Brown were forced to make statements in a bid to cool the panic. As the U.S. - the world's largest economy - faced chaos, the president insisted he was "on top of the situation", a claim many experts fear is over-optimistic. Despite the political leaders' attempt to calm nerves, stock markets from Asia to Europe plunged, wiping out billions in investors' savings.

Soon after news of the Bank's move, the Prime Minister issued his message of stability. With the City close to meltdown - 16 per cent has been knocked off the FTSE 100 so far this year - Mr Brown was under pressure to show he has not under-estimated the impact the global turmoil will have on the UK economy. He told MPs: "we will continue to take whatever action is necessary to maintain economic stability." But one of Britain's most experienced investors admitted he was "scared".

In afternoon trading, Lehman shares plunged $14.83, or 37.8 percent, to $24.43. At one point on the day the stock fell to $20.25, its lowest since June 2000. THE STOCK PLUNGE SLASHED LEHMAN'S MARKET CAPITALIZATION TO $12.96 BILLION, COMPARED WITH ABOUT $20.8 BILLION AT THE CLOSE OF TRADING ON FRIDAY. As Wall Street absorbs Bear Stearns' sudden and dramatic downfall, INVESTOR ATTENTION HAS TURNED TO THE QUESTION OF WHO MIGHT BE NEXT. Lehman, which has substantial exposure to the subprime debt that brought down Bear Stearns, is the target of much of that speculation. The bank is scheduled to report its first-quarter earnings Tuesday.

UBS Investment Research analyst Glenn Schorr downgraded Lehman shares to "Neutral" from "Buy" along with other companies in the sector, reflecting the perception that it may be "next on the list" -- though he was quick to offer a caveat. "For what it's worth," Schorr said, "we think Lehman is an excellent company that is far more diversified (by product & geography) than Bear, has a deeper capital base and far better liquidity position, and has done a great job managing risk in this incredibly challenging environment."

Hordes of rats have swept through the forests of Mizoram - home to just under a million tribespeople - feasting on the fruits of wild bamboo, which flowers every 48 years. Experts say that the rich protein content of the bamboo fruits increases the rats' reproductive power, and, when they finished off the fruits, the rats turned their attention to farmers' crops. The last time the bamboo flowered was in 1959 -- and the armies of rats that came in its wake decimated paddy fields across the region, leading to severe food shortages.

In 2007, the government hoped to be better prepared. But the rats could not be stopped because of bad planning and alternative rice supply plans went wrong, aid agencies said. "The government is reluctant to accept that the situation is rapidly slipping out of its control." Local people call the famine which follows bamboo flowering "mautum", which means "bamboo death" in the local language. In 1959, New Delhi brushed off local warnings of a famine as tribal superstition.

Mizoram needs around 15,000 metric tonnes of rice a month, but only about one-fifth of that was available now at subsidised rates. "Sufficient rice is not available with the food supply department. There is a huge shortfall of rice," Dominic Lalhmangaiha, a consultant with the state-run Disaster Risk Management programme, told Reuters. "Villagers are going to jungles to dig out roots to supplement their regular food."

Speaking on the last day of parliament, Mr Wen said the exiled Tibetan leader's claim of "cultural genocide" in Tibet was nothing but lies. Mr Wen said the protests were intended to "sabotage" the Beijing Olympics. China says 13 people were killed by rioters in Lhasa. Tibetan exiles say at least 80 protesters were killed in a crackdown by Chinese security forces. A spokesman for the Dalai Lama said Mr Wen's accusations were "baseless".

The Dalai Lama, who in 1989 was awarded the Nobel Peace Prize for his consistent opposition to the use of violence in the quest for Tibetan self-rule, has repeatedly called for dialogue with China. The protests began on 10 March - the anniversary of a Tibetan uprising against Chinese rule - and gradually escalated, culminating in a day of violence late last week. There have been no moves so far for an international boycott. On Monday, European Union ministers ruled out such a move, saying it would only punish athletes.

But on Tuesday, Ma Ying-jeou, the front-runner in Taiwan's presidential election, to be held on Saturday, said he would "not rule out" a boycott if the crackdown worsened. China says Tibet has always been part of its territory but Tibet enjoyed long periods of autonomy before the 20th Century and many Tibetans remain loyal to the Dalai Lama, who fled in 1959.