Six central banks led by the Federal Reserve lowered the cost of emergency dollar funding for financial companies in a global effort to ease Europe’s sovereign-debt crisis.
Tallystick gives the move in layman's terms:
FED increases dollars liabilities balanced by euros and other currencies held as assets. So America gets euros while European companies are planning for end of the euro. Another dump overvalued/worthless assets on Americans operation courtesy of the treasonous FED.
So, there was not enough private capital to fund Europe, not enough public money in Europe. To the US Europe has gone. Of course, this is not a fix for inadequate capital; another will be required ... who will provide the next band aid for profligate spending when the most profligate spender is now the band aid? Yeah, the problem is that big.
I asked this question in jest earlier this month:
Why not have each of the Euro nations simply transfer some portion of the debt that is owed their nation by the other Euro nations to Greece so that Greece can count those debts as credits against their debt?
The answer is apparently not to turn to other European nations, but to the US and the world as a source for credit funded by ... debt.
This Keynesian thing is crashing big.