WISHFUL THINKING ON THE GLOBAL ECONOMY - AND THE SAD HARD COLD NASTY TRUITH

NYTIMES: European Central Bank Intervention Buoys Markets

By DAVID JOLLY 4:42 AM ET

The interest rates on Spanish and Italian bonds plummeted and European bank shares soared, but the dollar continued to weaken on concerns about the U.S. economy.

BUOYS MARKETS!?!?

ASIA IS DOWN 3-4% AND EUROPE IS DOWN 2%. HARDLY GOOD.

THE INTERVENTIONS I FEAR WILL ONLY MAKE THE SHARP INEVITABLE EXTREMELY DECLINES TAKE LONGER AND BE A LITTLE MORE ORDERLY.

BUT THE DIRECTION REMAINS DOWN DOWN DOWN.

STAY TUNED...

UPDATE: THE BBC GOT IT RIGHT:

Markets volatile after ECB move

European stock markets give up early gains after the European Central Bank announced its intention to buy up government debt.

THE CENTRAL BANKS DON'T HAVE ENOUGH MOOLA TO STOP THE STAMPEDE.

SURE: CENTRAL BANKS CAN JUST PRINT MONEY - AS GREENSPAN ARGUED - BUT THAT'S PART OF THE PROBLEM!