Fed has no plans to help Europe, Dudley says (Reuters)

DAVOS, Switzerland — Is the euro crisis over? A leading U.S. economist says not by a long shot. Even as the head of the European Central Bank talked Friday of “positive contagion” in the markets and predicted an economic recovery for the recession-hit eurozone later this year, economist Barry Eichengreen warned that the debt crisis that has shaken Europe to its core could easily erupt again this year unless European leaders move faster to solve their problems.

Submitted by Jeffrey Moore via GlobalRiskInsights.com, In the 14th century, the Medici family of Florence began its rise to prominence, investing profits from a thriving textile trade to fund what would become the largest banking institution in Europe.  The success of the legendary banking family helped to usher in the Italian Renaissance and thus change the world. Now, Italian banks seem poised to alter the world yet again.

The message of the day is "damn the consequences, the casino bar shall remain open", whatever it takes, no matter the consequences to taxpayers who will be responsible for the bar tab. Bank of England Launches Two New Stimulus Packages The BBC reports Bank shares jump on new business support plans Bank shares have jumped in the wake of plans from the Bank of England to launch two new stimulus packages.

Reuters - The U.S.

The IMF finally had a "duh" moment in what should have been obvious in years ago. The IMF finally realizes that almost zero borrowing costs has encouraged speculation rather than hoped-for pick up in investment.Now, the IMF warns period of ultra-low interest rates poses fresh financial crisis threat.

Submitted by Simon Black of Sovereign Man blog, I’ve landed this morning in Frankfurt... financial capital of one of the few remaining ‘healthy’ countries in Europe able to inspire a modicum of confidence among investors.