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Central Missouri | Among the many stories I read is this ....
http://www.zerohedge.com/news/imf-scrambles-double-bail-out-capacit...
and this blog ... http://www.zerohedge.com/news/imf-scrambles-double-bail-out-capacit...
Euroland is getting ready and in what form it will take is anyones guess but if Germany remains in the euro or not a massive bail-out is being prepared, for entities and institutions are waaaay over levered and reaching the edge of the cliff. (that cliff edge is when they can't meet their current cash flow needs) Politicians will act only when they have no other choice (just look at the U.S.)
Either way Germany in or out will cause turmoil and turmoil is ussually bad for markets. It will also cause massive fiat creation which the first article above talks about. For to not create and bail would cause a chain reaction dominoe default the likes of which the banksters and politicians want nothing to do with. jmo
Just a little more inflation or deflation in the big scheme of things both are very bad ... here is the problem with deflation which is contraction of the money supply and available credit and a shrinking economy .....
In the question-and-answer period, Bernanke cautioned U.S. lawmakers against cutting deficits too quickly to reduce budget deficits. He has said that could put the fragile economy at risk.
The problem with inflation or the increase in the money supply and credit and then prices is that it screws the lower and middle class but it is indeed what Brnanke needs to grow the economy out of the quagmire but the problem is that the fed is out of stimulus answers and continued printing of a deficit by congress devalues the currency and eventually causes interest rates to go up which sets off the derivative bomb.
There is no easy path.
Edited by ehoff 9/30/2011 08:12
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Preparations
