On the very brink of the abyss

Well, my dear devoted reader, you cannot say you were not warned.  The situation in the eurozone is so dire that respected commentators are suggesting the USA Federal Reserve should come charging to the aid of beleaguered eurozone countries and buy sovereign debt.  If the ECB won't, the Fed will and Germany can go hang.  John Wayne rides again.

Would the American public stand for it and what might the electoral consequences be for Obama?

An apocalyptic article by Evans who manages to mention the dreaded 'f' word at the end of the article.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8918784/Should-the-Fed-save-Europe-from-disaster.html

See also:

http://www.telegraph.co.uk/finance/markets/8918763/Markets-pricing-in-endgame-for-the-euro-warns-UBS.html

IMF to the rescue?

http://www.telegraph.co.uk/finance/financialcrisis/8919470/IMF-drawing-up-517bn-package-to-save-Italy-Spain-and-the-euro.html

Any IMF involvement in European rescue packages would be partly underwritten by British taxpayers, which could leave this country liable if Italy and Spain did not repay any international loan.

Britain provides 4.5 per cent of the IMF’s funding and would, therefore, face a potential liability to an Italian package of up to €27 billion (£23 billion).