The credit market is not the only source of liquidity for world markets that is under threat. The “yen carry trade” – selling short the yen, at its low interest rates, and buying high-yielding currencies such as the New Zealand dollar – also looks sickly.

This trade, popular with hedge funds, is vulnerable to a rise by the yen. And in the last month, the dollar has lost 4.3 per cent against the yen, while the kiwi has lost more than 7 per cent.