ECB Does Something! World Saved.

Markets are up big today on news of coordinated liquidity facilities for European banks provided by the FED and the ECB(European Central Bank), along with Japan, the UK, Canada and Switzerland. This step does little to to avert the looming Euro zone sovereign debt catastrophe that markets are scared of. However, it does show that the ECB is willing to do something which has been much in doubt.

This willingness to do something is what has everyone chuffed because ECB action is widely seen as the only viable and effective solution to Euro sovereign troubles and so far the ECB has been earnestly telling everyone that they weren’t going to do anything. Investors came to believe in these statements strongly enough to push MF Global off of a cliff for betting that the ECB would act.

Here’s to hoping that this is indeed a subtle sign that the ECB won’t blow up the world and not another short term muddle of little consequence.