Daniel Knowles: This isn't the final solution ... but it does buy time for an indecisive Europe
Dramatic stuff from the big central banks this afternoon: the ECB, the Fed, the Bank of England, the Bank of Japan and even the Swiss National Bank have joined together to increase dollar liquidity. Or alternatively, once you cut through the jargon of the joint statement they've released, the Federal Reserve has massively cut the rate it charges to other central banks for access to dollars.
This is a dramatic intervention by the Fed. Clearly, they're more aware than the moral hazard obsessives at the ECB that a disaster is approaching.
This move means that eurozone banks, which are struggling to fund themselves in any currency privately, can still provide dollars to their depositors – many of whom are fleeing Europe. It ought to stop dead the credit freeze between Europe's banks that has been growing for much of the last three months.