Stocks Cut Losses on New IMF Credit Line Report (U.S to help bailout Europe?)

[Roland99]

Source: CNBC

Stocks erased most of their losses in a volatile session Tuesday, following news that a new IMF credit line could be used to aid the European countries.

Read more: http://www.cnbc.com/id/45400539

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more:

http://www.fxstreet.com/news/forex-news/article.aspx?storyid=874d9784-4e03-46fa-9964-b24c5eff1fdb

The IMF has stepped up. This is big news and is a solid reason for a risk rebound. It's a new precautionary credit and liquidity line It has been rumoured/discussed It can be upto 500% of members' quota Can be used up to 24 months. Cover any risk off trades, this should last.

We'll see about that last part.

Even more:

Uncle Sam To The Rescue: IMF Creates New European Bail Out Facility, The "Precautionary And Flexible Credit Lines"
http://www.zerohedge.com/news/uncle-sam-rescue-imf-creates-new-european-bail-out-facility

And here comes Uncle Sam:

IMF APPROVES CREDIT LINE PROGRAM CHANGES TO PROVIDE LIQUIDITY
IMF CREDIT LINE CREATES NEW SOURCE OF FUNDS FOR MEMBER NATIONS
IMF ADDS EMERGENCY FUNDING TOOL TO ASSIST COUNTRIES IN CRISIS
IMF NEW CREDIT LINE AVAILABLE FOR SIX MONTHS TO TWO YEARS
IMF CREATES PRECAUTIONARY AND LIQUIDITY LINE
IMF SAYS ACCESS UNDER 6-MONTH LIQUIDITY LINE COULD BE UP TO 500% OF MEMBERS QUOTA

And here is the math: Italy's quota is 7,882.3SDR; Spain is 4,023.4 SDR. Multiply by 5 and you get 40 Billion and 20 billion SDRs respectively, which translates to $61 billion and $31 billion. A total of $91 billion in additional capacity? Are you SERIOUS?

Good thing America can get its own house in order so it can go out and fix the world next, not with one, but two credit lines. Incidentally, absent the US ratifying these two credit lines they are as good as useless because with 17.7% of the total allocation, the US is the defacto lender of only resort (since this is used to bail out Europe, which effectively means Europe will not be lending into these credit lines). And good luck passing a global bail out vehicle through the Frankenstein monster that is the US legislative body.

[BeHereNow]

1. Global printing presses are whirring as we speak...

They've all gone mad.
BHN

[BeHereNow]

2. Hey, if they can create money out of thin air, why can't the rest of us?

Since fiat apparently is no longer connected to any reality what so ever,
I think we should all dig out our monopoly game boards and
start spending the "cash" claiming our right to create value
based on NOTHING but paper too.

BHN:evilgrin:

[DemReadingDU]

3. Why is the IMF Giving More Funds, When the G20 Won't?

11/22/11 Why is the IMF Giving More Funds, When the G20 Won't? by Graham Summers

So… the IMF is going to bail out Europe.
In case you missed it, the headlines just broadcast that the IMF will be expanding credit lines to Europe.

Didn’t the IMF already do this for Greece? How’d that work out? It didn’t. In fact, after two bailouts, quite a bit of debt write-downs, AND a default, Greece is still broke and on the verge of collapse.

And now the IMF is going to pull a similar stunt with Europe?

What’s really odd about this whole move is that the IMF, which is ultimately backed by the US, Japan, and other nations, is doing this when the G20 Countries themselves won’t:

more...
http://www.zerohedge.com/contributed/why-imf-giving-more-funds-when-g20-wont



The United States has by far the largest share of votes (approx. 17 percent) amongst IMF members
http://en.wikipedia.org/wiki/International_Monetary_Fund


IMO, the U.S. is going to be the country primarily bailing out Europe.
Why can't we use our tax money to help people get jobs, provide healthcare, etc. in our own country.