How credible are rumours of coordinated emergency rate cuts?

With overnight dollar Libor trebling yesterday to over eight per cent and three month Libors in just about everything moving ten or twenty points each day it seems inevitable that some kind of action needs to be taken to prevent complete collapse of the money markets... And so plenty of rumours have been doing the rounds about coordinated massive rate cuts by all the central banks...

All this we know. But how credible are the rumours? I can see a unilateral move by the Fed but find it very unlikely the ECB will (some of the remarks made yesterday by whatshisname about doing whatever it takes might have been a hint to silly me though)... Bank of Japan voted this week to keep rates on hold, bank of england might have a go next meeting but for political reasons are unlikely to do anything before their meeting... Kof thinks swiss national bank will cut rates in December... Watch their open market operations at 8 London time but again I don't see an emergency cut on the horizon from them.

Of course I might be looking very silly at 1.30 today

Thoughts?

Seems like the problem in the money markets is a trust thing - it's not that banks want to be paid well to lend, it's that they don't want to lend at all. I doubt a rate cut would help the money markets, although obviously they could help the stock markets. For that reason I agree with you that US action is most likely - anything to keep the dow up.