World markets are feeling the seismic waves of a bad economy, and in response several central banks cut interest rates almost simultaneously this morning, CNNMoney reported.

“It tells a lot about the weakness globally,” said Lakshman Achuthan, managing director of the Economic Cycle Research Institute. “We have a global recession now. It’s not simply a U.S. recession. This is what’s weighing on the impact of all of these bailouts.”

As of 6 a.m. Iowa time, the United States, Canada, England, the European Union, Sweden and Switzerland announced interest rate cuts, which rallied stock markets momentarily before they took another dive.

The Federal Reserve cut its rate to 1.5 percent from 2 percent in an emergency move, and the Bank of England also cut its rate by half a point to 4.5 percent; the European Central Bank reduced its rate to 3.75 percent. The Bank of England also announced today that it will implement a bailout plan for its banks, making at least $350 billion available.

“The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,” the Fed said to CNNMoney.

The early-morning announcements led to a brief rally in early trading for U.S. markets, when the Dow Jones industrial average jumped 200 points. However, the rally took a quick turn and the Dow was down nearly 200 points by 10 a.m. Iowa time.

In Germany, a leading stock index was trading flat after the announcement, but then fell 4.5 percent later on. In Paris, stocks were down 3.9 percent after the announcement; they had been down only 0.2 percent before. And in London, stocks were down more than 3.7 percent after the announcement before rising slightly.

When stocks closed in Japan, they were down nearly 10 percent; the worst drop since Japan’s crash in 1987 and their third-worst day in history.