Tick Tock, Euro Clock

Not a few days after the Financial Times's Wolfgang Munchau warned that the EU had basically until the end of next week to get a solution in place or the euro is done then we see the EU's money man, Oli Rehn, is warning of the same thing.

Europe faces a crucial 10 days to save the euro zone after agreeing to ramp up the firepower of its bailout fund but acknowledging it may have to turn to the International Monetary Fund for more help to avert financial disaster.

"We are now entering the critical period of 10 days to complete and conclude the crisis response of the European Union," Economic and Monetary Affairs Commissioner Olli Rehn said on Wednesday as EU finance ministers met.

Euro zone ministers agreed on Tuesday night on detailed plans to leverage the European Financial Stability Mechanism (EFSF), but could not say by how much because of rapidly worsening market conditions, prompting them to look to the IMF.

Italian and Spanish bond yields resumed their inexorable climb towards unsustainable levels on Wednesday, as markets assessed the rescue fund boost as inadequate.

Stocks fell and the euro weakened after ratings agency Standard & Poor's hit some of the world's leading banks with a credit downgrade.

And yes, yesterday's mass banking sector ratings agency downgrade hit banks like Goldman Sachs,  Bank of America, and Wells Fargo.  The contagion scenario from a euro collapse is guaranteed.  All of that explains this morning's stunning announcement from the Fed:

Central banks from the world's leading developed economies said on Wednesday they will take coordinated steps to prevent a lack of liquidity in the global financial system.

The U.S. Federal Reserve, the European Central Bank and the central banks of Canada, Britain, Japan and Switzerland said in a joint statement they had agreed to lower the cost of existing dollar swap lines by 50 basis points from December 5, as well as take other measures.

Woot, "other measures" are always fun.  Helicopter Ben's Magic Printing Press has gone international.  Hello, QE3!  The roller coaster is back folks.  Time to ride.