Downing Street: Credit crunch is back

The government has confirmed the credit crunch which plagued markets in 2008 has returned.

A day after central banks around the world intervened to try to create liquidity in markets which were drying up, the Prime Minister's office confirmed global economies were once again in the grip of a credit crunch. A spokesman for the Prime Minister told the Telegraph: "We are experiencing a credit crunch and that central bank action is about trying to mitigate the effects of that credit crunch. "They are ensuring they have the capacity to take action. The eurozone debt crisis has led to growing fears in financial markets about the stability of major European banks." Yesterday th...