Europe Slaps Nearly $1 Trillion on the Table to Bail Out... Uh... Itself?
And the Federal "Firefighter not Arsonist" Reserve slipped out a little note late on a Sunday that they'd be ready with bucketloads of "dollars" to "help out". Hands across the world now, kids, we're in this together...
European policy makers unveiled an unprecedented loan package worth nearly $1 trillion and a program of securities purchases as they spearheaded a drive to stop a sovereign-debt crisis that threatened to shatter confidence in the euro. Jolted into action by last week’s slide in the currency to a 14-month low and soaring bond yields in Portugal and Spain, governments of the 16 euro nations agreed to make loans of as much as 750 billion euros ($962 billion) available to countries under attack from speculators.
The ECB will also embark on “very significant operations,” European Union Economic and Monetary Commissioner Olli Rehn told reporters in Brussels after the 14-hour meeting. “The ECB has taken a decision to intervene in the secondary markets of government securities.”
Under pressure from the U.S. and Asia to stabilize markets, the European governments gambled that the show of financial force would prevent a sovereign-debt crisis and muffle speculation that the 11-year-old euro might break apart.
Europe’s failure to contain Greece’s fiscal crisis triggered a 4.1 percent drop in the euro last week, the biggest weekly decline since the aftermath of Lehman Brothers Holdings Inc.’s collapse. It prompted President Barack Obama to call German Chancellor Angela Merkel and French President Nicolas Sarkozy yesterday to urge “resolute steps” in Europe to prevent the crisis from cascading around the world.
Now if THIS doesn't work, I'm pretty sure we are out of anything to toss on any table or into any market or, uh, anywhere, because eventually all of that paper money was going to be requested in specie, right?
*Poof* now pay up, bitch.
This is sorta what happens when you attempt to indefinitely mark-to-Disneyland using a limited supply of paper that has spun wildly out of control. The entire event is framed as an "attack" by speculators but the governments themselves got their heads stuck, why are we the ones paying for the butter to grease them out?
Where is the money going to come from? Pay attention, "speculators," you still have a few moving targets...