The Fed has been bailing out the European banks according to Zero Hedge and according to the charts Tyler Durden has provided. This will keep the decline in Real Estate on track. This will possibly allow a QE3 and we think that the Europeans will buy US bonds.
One wonders if there is a divide between the European Central Bank and the Fed. That seems unusual, since I view central banks as working in tandem. So we will have to just observe how this works out. BI version of Tyler's articleArchive Link