World stock markets have again seen sharp losses, following news that an emergency financial package has been put in place to help a troubled US investment bank.
In Ireland, the ISEQ index of leading Irish shares has fallen below 6,000 points for the first time in almost three years.
Major US investment bank Bear Stearns has lost hundreds of millions of dollars due to the sub-prime mortgage crisis in the US, and will receive emergency funds for the next 28 days.
In an attempt to bolster faith in the US economy amid fears of a recession, President George W Bush has said the US economy is resilient and will regain its strength despite the hard times.
He was addressing the Economic Club of New York, which includes business executives, bankers and economists.
Mr Bush said the administration and the Federal Reserve have taken action to stimulate the economy and he advised the public to be patient because the economy would respond.
It is hoped that rebates being sent to taxpayers in the summer will promote consumer spending.
Mr Bush said experts 'expect this consumer spending to have an effect in the second quarter and a greater effect in the third quarter.'
The US president has so far resisted taking more dramatic steps, despite the risk of a recession taking hold before he leaves office in January 2009.
His speech in New York, the hub of US corporate power, appeared largely aimed at calming Americans' fears about the economy.
He has so far seemed powerless to temper high oil prices, which is a major source of US economic distress. His appeals to oil-producing Arab allies for relief on tight supplies have gone unheeded.
With oil prices at record highs, the mortgage market on the verge of meltdown and the specter of recession looming, Mr Bush has been scrambling to halt the slide in the economy, once seen as a relatively safe part of his presidential legacy.
