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After being down all morning, thanks to sovereign debt woes, US markets are hanging in there.The Dow is off less than 0.2%, which is pretty remarkable given the state of panic in Europe.
Even by recent standards today has been volatile.
So what’s preventing a bloodbath?
According to Katie Martin of Dow Jones, there’s a rumour going around about the ECB could somehow provide funding to IMF, which in turn would provide money to Europe.
Stop and think about what a Rube Goldberg contraption this is.
The ECB would provide money to the IMF, which would invest in the EFSF, which would then purchase sovereign debt.
If the ECB is going to print money like crazy — which is something it has to do — then perhaps it will be more palatable to the Germans if it goes through intermediaries like the IMF, than to countries directly. Just thinking out loud there though.
Still, the rumour seems far-fetched for now, and has apparently been denied.