No. Ultimately, AMERICANS bail out Europe. It's you and me. Well, me, anyway. You may be in the 50 percent of Americans who pay no income taxes.
Nov. 30, 2011, 12:00 p.m. EST
Fed bails out Europe while ECB dithers
By MarketWatch
WASHINGTON (MarketWatch) — On one level, it’s almost funny to call offering dollars at a cheaper rate to foreign banks “coordinated” action.
It’s only coordinated in the sense that the Federal Reserve is printing the dollars and the European Central Bank and other central banks put the greenbacks in the virtual vaults of mangled commercial banks that are drowning in European debt. See story on Fed action. http://www.marketwatch.com/story/global-central-banks-move-to-bolster-liquidity-2011-11-30
But it’s not coordinated in the sense that the ECB taking any bold action of its own to stem the euro-zone debt crisis.
The ECB on Tuesday accidentally wandered into quantitative easing, basically when banks didn’t want to commit to lending money to the Frankfurt-based central bank, which effectively meant that a tiny sliver of the purchases of Spanish and Italian debt it made were funded from money printed out of thin air. See full story on Spanish and Italian debt. http://www.marketwatch.com/story/ecb-fails-to-offset-bond-buys-amid-bank-stress-2011-11-29
That money printing, called quantitative easing, is old hat at the Fed, as well as at the Bank of England and the Bank of Japan. The results are admittedly debatable, but in ECB circles it’s unthinkable to contemplate, as the ghost of the Weimar Republic continues to haunt German policy makers.
More: http://www.marketwatch.com/story/fed-bails-out-europe-while-ecb-dithers-2011-11-30
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