Jean Claude Trichet, the president of the European Central Bank, warned that the credit crunch will worsen, and that there would be a "very significant market correction".
Despite this, Trichet and the ECB have steadfastly refused to lower European rates in concert with the Fed and Bank of England.
Trichet is of the belief that there are no risks of a recession in Europe.
Would that all bankers and economists have his gift of "perfect" foresight!
Notwithstanding Europe's alleged immunity to recession the ECB, by its inaction, has ensured that the credit crunch will be deeper and more protracted that it needs to be.
The world needs a co-ordinated response by the central banks, not an isolationist "we're all right Jacques" response.