ECB sees crisis of 'enormous proportions' as Spain creates mortgage rescue fund

The European Central Bank has dramatically changed its tune over the last twenty-four hours as the credit freeze worsens, acknowledging for the first time that the world faces the gravest crisis since the Great Depression.

By Ambrose Evans-Pritchard
Last Updated: 11:36AM BST 08 Oct 2008

A string of governors from across the eurozone have today issued grim warnings in what seemed a coordinated move to prepare the markets for interest rate cuts, perhaps within days.

Guy Quaden, Belgium’s ECB member, said the violent storm ravaging Europe’s banking system was far from over. “This is the worst financial crisis since the Thirties,â€