problems in the Eurozone

The problems in the US subprime mortgage market have really crossed the Atlantic. First was the German bank IKB, which the German government was forced to offer a 1bn Euro lifeline, which they might have to give back because they could be classed as illegal state aid, and now it is the French bank BNP Paribas

French bank BNP Paribas suspended three investment funds worth 2bn euros (£1.35bn), citing problems in the US sub-prime mortgage sector

This has caused a serious problem in the Eurozone markets forcing the ECB to intervene. To me a 95bn Euro bail out is a bit more than a fine tuning operation no matter what the ECB may say, this is an intervention on that scale had not been seen since the aftermath of the terrorist attacks on New York in 2001 and is the largest single action that the ECB has ever mounted according to the Telegraph. I'm neither an economist nor a financial expert but when you get interventions on a scale comparable to that clearly something major is up and it won't be pretty.