So earlier this morning I said it looked like Europe was broken again but we could see another Mother of all bailouts proposed at any time.
Well, about 15 minutes later the Fed basically announced that they are willing to bailout the world and stock markets have rocketed higher as a result (Europe is up 3-4% as I write this). I'm oversimplifying the situation but you get the point.
In essence, this latest effort is designed to weaken the US dollar relative to the Euro. They'll say that they have other motives, but at it's core this is a currency move. The problem with this is that most people think the Euro needs to move much lower (not higher as the central banks are moving it now) in order to stabilize the Eurozone.
So, in the interim this means more of the same for those of us in the US - weaker $ = higher commodity prices (stocks are up, oil is over $101).
Remember when the Fed just dealt with inflation and employment? Yeah, neither do I. I think they've become addicted to seeing green on their Bloomberg terminals.