EU Working on ‘Radical’ Plan for Banks: Report
We have the news that QE3.0 can be now a coordinated action between central banks - EU is In - as this report suggest.
"Chairman Ben S. Bernanke At the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming. To put things in perspective, please, first read the Bloomberg articles below:
Anybody is for the strong dollar from the FED and who's "tool box is empty"?
"Gold, VIX, Panic and the PPT in action - will we see QE after all? The recent Panic and Fear in the market is not something to be taken lightly. According to the chart above - it is only second to the Panic during financial meltdown in 2008 and only slightly higher than we have experienced last year in May.
Some people are talking about today's Sell Off in Gold as a sign that Bernanke "will do nothing" and his "tool box" is empty. We see this "trash Gold operation" as a part of PPT plan to save the market again. Please do not make any mistake - it is not for the sake of investors, at least not ordinary ones with their pension plans - it is for the insolvent financial system in order to keep it running. The falling market in the deflation death spiral with ticking up CDS on all banks, with the stars like Bank of America in the headlines, will make the real financial meltdown is just one policy mistake away. More"
Following weeks of heavy losses for banking stocks across Europe, the Sunday Times in the UK reported Sunday that European officials are working on a "radical plan" to prevent a fresh pan-European credit crunch.
Without citing sources, the paper said officials from the European Central Bank and European Commission are considering offering central guarantees over certain types of debt issued by banks.
The paper goes onto say that the move comes after a number of European banks where shut out of international money markets.
The report comes after the head of the International Monetary Fund warned on Saturday that "urgent recapitalization" was needed for Europe’s banking industry.
“Developments this summer have indicated we are in a dangerous new phase. The stakes are clear. We risk seeing a fragile recovery derailed, so we should act now,” said Christine Largarde in a speech in Jackson Hole Wyoming on Saturday.
Investors are also worried about the prospects for the second Greek rescue package after Finland demanded collateral against any loans handed to the ailing euro zone member.
On Saturday, President Barack Obama and German Chancellor Angela Merkel spoke on the phone and agreed on the importance of "concerted action" to address current economic challenges and spur growth and job creation in the global economy."