November 30th, 2011
04:47 PM GMT
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London (CNN) – The U.S. Federal Reserve, European Central Bank and other central banks Wednesday took co-ordinated action to oil the wheels of the world's financial system.

The move came as Olli Rehn, Europe's Commissioner for Economic and Monetary Affairs, warned the eurozone was entering a critical phrase to solve its debt crisis, which has deepened since Greece took its first bailout in May 2010. Rehn said the region has "10 days to complete and conclude the crisis response of the European Union."

Richard Quest, CNN's international business correspondent, says the banks' move will make it easier for financial institutions to get on with the daily business of lending between each other. However, it does not address the fundamental problems of the eurozone.

CNN chief business correspondent Ali Velshi says it was done amid signs of a possible global credit freeze, the likes of which have not been seen since the collapse of Lehman Brothers in 2008.

The central banks' move boosted confidence, with markets rallying significantly. But its lasting impact on Europe and the world's financial system is not yet clear. Quest will be counting down Rehn's 10 days on Quest Means Business. Join him Monday to Friday, 1900 London time. You can also find him on Twitter.

Filed under: BusinessQuest Means Business

soundoff (20 Responses)
  1. Alan MacDonald

    What TEN DAYS? We're there now.

    Crossing the Global Rubicon:

    It is being broadly reported, as we speak, that the Obama administration will NOT allow more US taxpayer money to be used to bail-out European banks, as reported in this very USA Today article:

    "And despite Obama's promise to "do our part," Carney said no U.S. taxpayers' funds are needed, even if the International Monetary Fund is called on to help in any bailout."

    And YET, this key NYT front-business-page article this morning, says that the US FED WILL contribute millions/billions in 'no interest' money from the US FED window to European Banks:

    Soooooo, "what we have here is a failure to communicate" ... OBAMA's BIG LIE.

    Here's my comment to the NYT and USA Today:

    Obama promised just yesterday that U.S. citizens could be sure that he would not allow any American funds (that might further peonize them) to be diverted to Europe.

    Oh well, another Obama promise made AND BROKEN, but this time in real-time - so fast was the lie that it makes one's head spin.

    Best luck and love to Occupy Empire.

    Liberty, democracy, justice, and equality

    Alan MacDonald

    PS. Oh, I know what the confusion is in Obama's apparent bold-faced lie to American citizens. He's actually speaking honestly, but as the faux-Emperor of the world, rather than just the president of our former country -- since what we still consider 'our' country is now the nominal HQ of the disguised corporate/financial/militarist Global EMPIRE, which hides behind the facade of its modernized TWO-Party 'Vichy' sham of faux-democratic and totally illegitimate government - just as an earlier Nazi Empire tried to hide behind its crude and single-party 'Vichy' regime in France c. 1940.

    It is now necessary for the global corporatist media to clearly articulate anything Obama says as either coming from the nominal president of the country previously called America, or from the mouth of the First faux-Emperor of the 21st century Global Empire - the real and accomplished Fourth Reich.

    November 30, 2011 at 6:01 pm |
  2. Elaine Albertson

    The basic problem is still that not only the US, but the Euro economies have become based on debt, and the buying, selling, and speculation of debt, rather than on production and pay-for-what-you-get. The near-Armageddon of the derivatives fiasco (which has never been clearly presented to the public, but which is widely known to have been the underlying issue with Lehman) did nothing to remove the fiscal blinders. All the bailouts in the Universe will not erase that fault, and I think we're headed for the so-called "fictional" scenario of a global currency meltdown.

    Stash your cash. Buy gold. Buckle your seat belts,'s gonna be a rough ride.

    November 30, 2011 at 8:29 pm |
  3. Hans from Europe

    There is really something strange going on: There are a lot of Goldman Sachs former employees showing up in he European financial and political theatre.
    We all know that these people are worse case senario persons, or better known as he biggest thieves someone could ever dream of.
    The debt of America is much bigger than everything the Europeans can come up with, so what is really going on.
    I guess IT is theft on a very global scale , produced by the Same thieves who destroyed the American dream and are now continueing in Europe.
    The Goldman Sachs (or teaparty adepts) Lovers Will finally destroy everything Free people stand for.
    Thank you.

    December 1, 2011 at 12:26 am |
  4. Samuel

    10 Days, what a bullshi..., thats typically CNN

    December 1, 2011 at 11:21 am |
  5. John

    These people are desperate for the euro to fail. It has come down desperate measures irrespective of the consequences. BTW, all those austerity measures seem to prove IMF conditions a failure.

    December 1, 2011 at 1:23 pm |
  6. fossati cristina

    let free euro....revalutation solve economic problems of CEE
    from the very begining of the European Union, Euro has a imposed value by political interests
    so that it does not any more reflect the state of economy but an uncertain state of
    a wrong international politics dominated by financial speculations to get greater power of
    domination into a community that declares itself democratic???!!!!

    December 1, 2011 at 1:49 pm |
  7. Awabnavi

    There is only one way Europe can reverse its economic decline. Start recolonizing previous colonies lost due to the aftermath of World War Two. They used to get free RESOURCES from the colonies and also markets for their products. Many of those markets have been wrested away from them by the emerging economic powers of the East. Iraq, Afghanistan, Libya are examples of the West's new colonizing efforts. Get their RESOURCES and sell them our goods, that seems to be the current moto and effort of the West.

    December 1, 2011 at 2:48 pm |
  8. mandyjeancole

    Lets not trivialize the effect that the banking fraternity and the so called investment houses have contributed to this dire situation in its pursuit of greed ...we are talking about Greed on an industrial scale never before seen in most peoples lifetime, the... I'm alright jack pull the ladder up...approach to stealing (by deceit) other peoples money to feather their own nest is nothing short of criminal deception,,AIG,Fannie Mae and Freddie Mac,Lehman Brothers, Bear Stearns and Merrill Lynch, Northern Rock RBS,LLoyds/TSB the list goes on....with CEOs and other executives of these grotesque companies walking off with millions in pay and golden parachute pensions far far in excess of what they need or indeed deserve..these parasites should be sharing a prison cell with Bernard Madoff (who at least admitted he was nothing but a common thief) not picking out their next hand built ocean going vessel that's been payed for by other peoples hard work. MJC

    December 1, 2011 at 3:56 pm |
  9. ELnene33

    The World PIMPS got stall along their flight ... time to enjoy their FREE-FALL ehhehehehehehee

    December 1, 2011 at 6:08 pm |
  10. ELnene33

    in the begining ... it was a crisis "`BY-DESING" in the
    end, they actually forgot how bad they RIGGED the blueprints hhehehehehe

    December 1, 2011 at 6:12 pm |
  11. PeterStockwell

    I'd like to hear Gordon Gekko on this.

    December 1, 2011 at 6:57 pm |
  12. Rigger

    This crisis has grown out of all proportion because the Europeans expect someone else to bail them out. They are holding a gun to the worlds head and daring the markets to pull the trigger.
    Another ten days and they'll have a solution my backside they will. This lot couldn't shave a pig, but they sure know how to give an investor a haircut.

    December 1, 2011 at 8:13 pm |
  13. Robert Dawson

    Any first year economics student could solve the financial mess in Europe, the real problem is the politicians trying to figure out how they can do it and still get elected. Get ris of your politicians and you will esolve the problems quite quickly.

    December 2, 2011 at 3:49 am |
  14. Ehjay

    Quote "The U.S. Federal Reserve, European Central Bank and other central banks Wednesday took co-ordinated action to oil the wheels of the world's financial system" Use of the term "oil" is ironic since these banks form a "Cartel".just as the "oil nations" formed a cartel.

    Can anyone explain why this group of banks should not be labeled a Cartel?
    Can anyone describe how their purpose (in principle) differs from the Oil Cartel, or any other cartel?. .

    December 2, 2011 at 4:43 am |
  15. Ehjay

    I would add one more comment.
    Bank caused the 1929 crisis and thousands of banks were allowed to fail, which balanced the financial system.
    Banks caused the 2008 crisis and the Fed distributed S 7.7 trillion (globally) to save the banks.
    That left the financial system unbalanced with too many "too big to fail" corporations.
    Forest fires serve a purpose in nature, they destroy the old and allow new growth to begin again and restore balance.
    The same is true for a financial crisis every 75 years or so.
    Governments interfere with the natural laws of economics at their peril.

    December 2, 2011 at 5:09 am |
  16. OzGlobal

    Be careful not to criticize this news agency's motives for lobbying for a Euro collapse or your comment will 'await moderation' indefinitely. Censorship and propaganda are alive and well. Wonder who is paying for this campaign?

    December 2, 2011 at 7:37 am |
  17. Suave

    US to save Europe? That country with 15K trillion debt itself? Everybody's nuts...

    December 4, 2011 at 7:26 pm |
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Quest Means Business airs Monday to Friday, 1600 New York and 2100 London, and is hosted by Richard Quest.



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