US bailout of EU debt in progress?

[Emily]

http://www.marketwatch.com/story/china-gets-fresh-chance-to-float-the-yuan-2011-12-12

By Caixin Online
Dec. 12, 2011, 9:31 p.m. EST
China gets fresh chance to float the yuan
Today?s crisis-environment opportunity must not be missed
BEIJING ( Caixin Online ) - Economic gloom is deepening in China and abroad, forcing extraordinary measures. Responding to the euro zone?s debt crisis, for example, six central banks led by the U.S. Federal Reserve recently lowered the cost of emergency U.S. dollar funding for European banks. And at home, the People?s Bank of China cut the reserve requirement ratio for commercial lenders by 0.5 percentage points...

I think lowering the cost of funding means that more risk is being assumed by the US. There has been speculation that AIG insured a lot of risky EU debt and we were going to bailout EU debt because of this.

http://wallstreetpit.com/26998-is-the-federal-reserve-behind-the-european-bailout

Is the Federal Reserve Behind the European Bailout?
By Larry Doyle May 10, 2010, 12:57 PM Author's Website
Is the American taxpayer ultimately bailing out the European Union? Far fetched? Don?t be so sure....

http://www.nakedcapitalism.com/2010/02/german-paper-says-aig-may-have-sold-cds-on-greece.html

Sunday, February 21, 2010
German Paper Says AIG May Have Sold CDS on Greece

http://seekingalpha.com/article/310148-aig-increases-exposure-to-eurozone-debt-or-why-government-bailouts-need-to-stop

AIG Increases Exposure To Eurozone Debt, Or Why Government Bailouts Need To Stop
November 25, 2011
Who could be dumb enough to increase Eurozone debt this year? You guessed it, tax payer funded AIG!....

They might be picking up more debt out desperation, kind of like the way gamblers 'double down.'

http://www.zerohedge.com/news/evolution-warns-total-carnage-and-meltdown-european-bank-sales-cds-european-sovereign-debt-soar

Evolution Securities Warns Of "Total Carnage And Meltdown" As European Bank Sales Of CDS On European Sovereign Debt Soar
Tyler Durden's picture
Submitted by Tyler Durden on 12/09/2011 13:18 -0500

As much as we hate to say it, Europe is now without a shadow of a doubt the new AIG, only this time such heretofore considered insane (in retrospect) activities as doubling down to infinity on ones TBTF status are out in the public record for all to see.

But good poker players like to bluff, so are these staged panics to get the have-nots to keep bailing out the excesses of the haves?

 

[sharon sanders]

Re: US bailout of EU debt in progress?

China refused to help so.......

 

[Emily]

Re: US bailout of EU debt in progress?

http://www.aljazeera.com/indepth/opinion/2011/12/201112101404444367.html

Europe on a Chinese shoestring
As the debt crisis deepens, China is the only one capable of saving the euro - but will Europe accept the conditions?
Yao Yang Last Modified: 13 Dec 2011 08:35
[snip]
A failed euro, moreover, would be bad for China, leaving the US dollar as the single international reserve currency. It would also mean that the European market, currently China's largest source of export demand, would be far weaker.

But China will not provide substantial financial assistance without the EU's ironclad guarantee of the investment. Equally important, China will withhold aid unless and until the EU meets certain conditions, including conferral of market-economy status. China has said what it wants. It is up to Europe to strike the deal.

Interview with Jin Liqun, chairman of China's sovereign wealth fund:
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Jin Liqun says he needs a return on the investment reasonable enough to guarantee the risk so he can explain to China's population why they are bailing out a more prosperous population with full retirement at age 55.

I guess I wish the population of the US were a harder sell on taking on this type of risk and would question why we have two classes of workers in this country:
http://www.usatoday.com/news/nation/story/2011-12-08/state-pensions-workers/51750670/1
States expand lucrative pensions to more jobs

I know quite a few middle aged tech workers who lost their benefits and hopes for a secure retirement back in the early 2000's when their jobs were sent to Canada, (not China), under NAFTA. We can't blame China or Canada for the decisions and deals US leaders are making.