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Hey, didya hear we're bailing of the rest of the world?

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late to the dance. Barack told the EU that we'd send help two days ago:


Washington (AP) -- Wary of Europe's deepening debt crisis, President Barack Obama said Monday the United States stands ready to do its part to help the continent, even as the White House ruled out any financial contributions from U.S. taxpayers.


Meantime, a top European official offered his assurances to Obama and the American people that Europe's leaders fully understood the magnitude of the crisis. But European Commission President Jose Manuel Barroso warned that decisions on how to solve the economic woes could take time.


The annual meeting between U.S. and European Union officials came amid growing fears over the future of the euro. Experts say that without drastic action, the euro could be days away from collapsing, a scenario that could cause more financial damage to the already shaky American economy.


While Obama offered no specifics on how the U.S. may be willing to assist Europe, he said failing to resolve the continent's debt crisis could damage a U.S. economy saddled with slow growth and 9 percent unemployment.


"If Europe is contracting, or if Europe is having difficulties, then it's much more difficult for us to create good here jobs at home," Obama said at the conclusion of the day-long summit.


While Obama has offered support to his European peers, the U.S. believes the Europeans have the financial capacity to solve the debt crisis on their own.

But some U.S. allies, including Finland and the Netherlands, have called for the International Monetary Fund to be bolstered with more capital so that it could in turn help stem Europe's debt crisis from deepening and spreading.


The U.S. is the single-biggest stakeholder in the IMF. And earlier Monday, White House spokesman Jay Carney said the IMF has substantial resources already.

"We do not in any way believe that additional resources are required from the United States and from American taxpayers," Carney said.


European leaders are set to meet Dec. 9 to discuss next steps in tackling the financial crisis. New ideas were circulating Monday for how to finally cap the debt woes that began in Greece two years ago and have spread to other larger economies, most notably Italy.


One idea gaining momentum, was a radical proposal in which countries that use the common currency would cede control of a big chunk of their budgets to a central authority. Some say the proposal would be a big leap toward a United States of Europe, a move that could greatly enhance European stability, but at the cost, critics say, of national sovereignty and democratic accountability.


Another plan being aired in the face of fierce German resistance is for the eurozone's six triple A rated nations to pool their resources through a joint bond to prop up some of the single currency bloc's most indebted members. Germany, the EU's richest member, rejects the idea because it fears it would be tapped for the lion's share of the bailout.


Back in Washington, Barroso said Europe's leaders are taking strong steps to solve what he called an unprecedented situation.


"We are absolutely serious about the magnitude of the challenges," he said. "You have to understand that sometimes some decisions take time."


Carney said that Obama, along with Treasury Secretary Timothy Geithner, would continue to stay in close contact with European leaders, including German Chancellor Angela Merkel and French President Nicolas Sarkozy. Vice President Joe Biden will travel to Greece later this week to meet with new Prime Minister Lucas Papademos, who took office earlier this month. While Monday's meeting between Obama and European Union leaders centered on the global economy, there were also discussions on supporting democracy in the Middle East and North Africa, cooperation on counterterrorism and transatlantic law enforcement, and Iran.



and next thing you know... poof

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I watched the EURUSD run from 1.33 to 1.35 in a heartbeat this morning based on this news...


it is starting to sink in that the move not only devalued the USD, but Devalud several Currencies in one shot.


I forgot if it were Jimmy Rogers or someone else that said you will see a time when Dollar and the EURO will simultaneously drop.



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Wonderful, Ben and Barack have figured out away to get our financial collapse closer to the European financial collapse.


Diffcult to figure out why everybody is so happy when all of the underlying conditions are still present and not fixed. :dismay:

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i have a friggin headache.


beige book out just now.



Overall economic activity increased at a slow to moderate pace since the previous report across all Federal Reserve Districts except St. Louis, which reported a decline in economic activity.....


...Hiring was generally subdued


no $hit, sherlock! 

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Apparantly an unnamed European Bank came very close to failing in the wee hours...


Any increase in usage of the swap lines will result in an increase in reserves held by the US banking system: for European banks that do not have accounts at the Fed, liquidity is provided through US correspondent banks. The fact that the discount rate is 75bps whereas OIS+50 is under 60bps creates some odd optics, as it is cheaper now for European banks to borrow dollars from the ECB than for US banks to borrow dollars from the Fed. The press releases states that "U.S. financial institutions currently do not face difficulty obtaining liquidity" but if conditions deteriorate the Fed has tools which they "are prepared to use," -- which we read as saying a cut in the discount rate is not imminent, but would readily be forthcoming if US banks began to face funding difficulties as well.




The new foreign liquidity swaps, whereby the Fed can offer euros, yen, loonies, pounds or swiss francs to US banks, is a novel step and a curious feature of today's announcement. The Fed's official statement is that these are being implemented as a "contingency measure." There are no plans to make these operational in the near term, but are apparently being set up as a backup plan in the event of a worsening in global financial conditions.



weewee - anthing to add would be appreciated

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