Credit Jitters Spread: ECB Comes to the Rescue.

Things are coming apart this morning...

ECB Offers Unlimited Cash as Bank Lending Costs Soar: The European Central Bank, in an unprecedented response to a sudden demand for cash from banks roiled by the subprime mortgage collapse in the U.S., loaned 94.8 billion euros ($130.2 billion) to assuage a credit crunch.

BNP Paribas Freezes Funds as Loan Losses Roil Markets: BNP Paribas SA, France's biggest bank, halted withdrawals from three investment funds because it couldn't ``fairly'' value their holdings after concern over U.S. subprime mortgage losses roiled credit markets.

I love it. Follow this: 1) A massive sustained increase in liquidity by central banks results in a massive global Credit Bubble. 2) The Credit Bubble starts to deflate and so the central banks come to the 'rescue' by injecting more liquidity.