The EU unveils a record financial stabilization plan worth 750 billion euros (more than 109 trillion Korean won), aimed at stemming the spread of the sovereign debt crisis from Greece to other euro zone countries.
The Baseline Scenario explains the three main elements of the plan:
1. 750bn euros in a fiscal support program, with 1/3 coming from the IMF (although this was apparently news to the IMF).
2. The European Central Bank promises to buy bonds in dysfunctional markets.
3. Swap lines with the Federal Reserve, to provide dollars.
http://baselinescenario.com/2010/05/10/eurozone-the-kitchen-sink-goes-in-now-it’s-all-about-solvency/
Denninger argues that the ECB learned nothing from the U.S.
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