WHOOPS: Europe Rally Collapses After Bloomberg Corrects Report About IMF Funding Boost

Quick update.

An early rally across Europe and the US has faded.

Initially Bloomberg had reported that the IMF was seeking to boost its firepower by $1 trillion.

Now it’s corrected the report and said its only seeking to expand its firepower by $500 billion.

It’s actually not good news either way. The need to expand firepower reflects a severe problem, and since the ability to raise funds from member states is by no means guaranteed, there’s nothing necessarily “good” about the IMF wanting a lot more money.

Here’s an updates look at Italy’s FTSE MIB index.