http://www.marketoracle.co.uk/Article30666.html

Key measures being contemplated at the time of writing are :

• Greece debt holders to take a 50% hair-cut i.e. cut Greece debt from Euro 340billion to Euro 170billion.
• Cut the interest rate PAID on Greece debt, perhaps to even ZERO.
• Expand the financial stability fund from 440 billion euros to at least Euro 2 trillion and perhaps even Euro 3 trillion by leveraging up by ECB money printing.
• Re-capitalise the bankrupt European banks that would take a huge hit on a Greece default.

http://www.zerohedge.com/news/goodbye-operation-twist-hello-qe-x1

Remember when the Chairman did a quick drive by with the much price in Operation Twist, and the market came, saw, and plunged? That was a week ago? Two? Well, as we have been predicting since December 2010, that was merely the appetizer, or as we phrased it the same as last year's July QE Lite to last year's August QE 2. Confirming both our speculation, and the realization that Bernanke knows only how to print more money and nothing else, were his first public remarks since the launch of Op. Twist, at a Cleveland Fed forum last night in which he said that "the central bank might need to ease monetary policy further if inflation or inflation expectations fall significantly... Bernanke indicated a willingness to push deeper into the realm of unconventional policy if economic growth remains anemic. ""If inflation falls too low or inflation expectations fall too low, that would be something we have to respond to because we do not want deflation," Bernanke said. The comment was made in response to a question about a recent decline in market-based inflation expectations, which policymakers see as a good gauge of future inflation trends." And since the key "deflationary" metric that he looks at, as wrong as it may be, is the stock market, looks for stocks to resume trading with schizophrenic abandon, surging ever higher on increasingly bad economic data. Of which we will have a lot.

My conclusion is that they will all print money as much as they can, they don't like deflation because deflation will kill Big Banks, so maybe we are now in correction mode but after that there will be wild ride upside.

I think that they will probably postpone Greece default to December, print money and give it to insolvent Banks and FED must also print more money if he wants that Zombie Banks like BofA or MS survive, they have no choice, we will see in not so distant future hyperinflation and Gold mania.

GLTA