Federal Reserve in panic mode.
by Stephen Lendman
On September 13, the Fed announced QE 3. Pimco head Bill Gross tweeted Bernanke plans to buy mortgages "till the cows come home."
It's open-ended along with near zero short-term rates. His move suggests desperation. What does he know, we don't, and why now? Things aren't as they seem. They're worse.
Troubled Eurozone countries are imploding. Obama practically begged Angela Merkel to keep things intact until post-election. Greece is bankrupt. Only its obituary remains to be written.
Portugal and Ireland are sinking. So is Italy. Spain is practically coming apart. It's been deteriorating for years. In August alone, depositors withdrew 70 billion euros from its banks. Their combined market cap is 114 billion euros.
They need 20 billion more euros monthly to keep operating. Fund outflows cause enormous pressure. Collapse may be impossible to prevent. Nationalization hasn't helped.