It is official: the last year in financial markets isn’t the Global Financial Crisis, the credit crunch, or even the Global Recession. According to a Governor of the US Federal Reserve, it’s a “panic” — a description he made clear in a surprise speech in the US overnight.

In the speech entitled “The Great Panic of 2008”, Fed Governor Kevin Warsh described the American economy as being in a state of a state of a panic that predated the official recession and may have significant long-run implications. It was one of the clearest and most striking speeches from a Fed member since the credit crunch erupted in August 2007.