Now It’s a Global Bailout: Markets Surge After Central Banks Band Together To Shore Up Faltering Eurozone!

• What this simply means is: more money printing, creating massive amount of money out of thin air to bail out the Too Big To Fail banks. The so-called liquidity problem, which Eurozone banks are facing, is the symptom and not the root cause of the problem. Eurozone banks are unable to get USD because other banks know that they are insolvent ie: bankrupt! Thus, distrust is there and refusal to lend to Eurozone banks. You cannot solve a insolvency problem by lending more money to these banks. It is only a stop-gap solution to prevent wholesale catastrophic collapse. But the catastrophic collapse will come about soon! (emphasis mine)
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  Now it’s a global bailout: Markets surge after banks band together to shore up faltering Eurozone
  By Hugo Duncan, http://www.dailymail.co.uk/
  A major global bailout fund backed by British taxpayers was launched yesterday to stop Europe’s creaking banks running out of money. The Bank of England teamed up with central banks around the world to flood the financial system with unlimited amounts of cash.
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  The dramatic intervention, on the third anniversary of the collapse of investment bank Lehman Brothers, underlined how worried finance chiefs are from America to Japan about the global economy. It echoed the coordinated action taken by central banks in autumn 2008 during the worst days of the financial crisis.
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  The latest move came as the debt maelstrom in the Eurozone threatened to spiral out of control after weeks of turmoil on the financial markets. European leaders are desperately trying to secure Greece’s future in the Eurozone but economists fear it is only a matter of time before the country defaults on its towering debts and quits the single currency. That would bankrupt the Greek banking system and leave lenders across Europe, particularly in France and Germany, nursing heavy losses.
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  Christine Lagarde, the head of the International Monetary Fund, warned that the global economy has entered ‘a dangerous new phase’. She said the action taken by central banks in Europe, America and Japan showed ‘they will do what it takes to maintain stability in the financial system’.
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  Olli Rehn, the EU’s economic and monetary affairs commissioner, said: ‘The outlook for the European economy has deteriorated. ‘Recoveries from financial crises are often slow and bumpy.’ It is feared that the debt crisis in the Eurozone will derail the global economy’s rebound from recession. The crisis will dominate talks between US Treasury Secretary Timothy Geithner and this European counterparts at a meeting in Poland today (FRI).
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  Shares across Europe rose sharply after the emergency measures were announced. French bank stocks, which are heavily exposed to Greece, were the main winners having lost around half their value this year. But analysts warned that the respite could be short-lived unless European leaders get to grips with the debt crisis crippling the single currency bloc.

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