Now, this is being billed as a joint action by major central banks around the world, but make no mistake, it is a U.S.-led “coalition of the willing” type scenario where we are going to bring brute force to bear on a problem that could tear the euro zone apart, cause financial contagion around the world and plunge us into renewed recession.
But will it work?
This is a financial intervention, designed to protect the banks, through a fairly elaborate interbank lending scenario. But it does not affect the underlying economic difficulties of the national economies in the euro zone. It does not, for instance, balance the budgets of Greece or Italy.
At a minimum, the move provides a little wiggle room for the economies of the euro zone. Personally, I think it could be a turning point, providing important grease to help us all muddle through the next couple of years. (Our readers said last month that if the euro zone can make it through 2012, it may survive.) On the other hand, some observers argue that this action moves us in exactly the wrong direction.
What do you think, dear reader? Brilliance or blunder? Something in between? Or something else?
UPDATE: This survey is now closed. Check the results here.
Steve Bills is a senior editor at Buyouts Magazine. Any opinions expressed here are entirely his own. Follow him on Twitter @Steve_Bills. Follow Buyouts tweets @Buyouts. For information on how to subscribe, contact Greg Winterton at firstname.lastname@example.org.