Can banks provide a solution as financial system on precipice?

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank have announced coordinated actions to enhance their capacity to provide liquidity support to the global financial system.

The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity. And if you believe that, you’ll believe anything. What they really mean is the global financial/banking system is at the edge of the precipice or, in the case of large parts of Europe, already over it in true Wile E. Coyote fashion. Liquidity If this were to be just a liquidity crisis and if the additional liquidity they intend to supply did end up in households and corporatio...