Would the ECB/IMF theory become a probability?

Have you ever wondered how the Europe crisis started? What is more important is how would the European crisis end?

Markets have been volatile not knowing the outcome of the European debt crisis. The bears have been designing speculative attacks on most high yield assets. Investors have flocked to the US dollar and the Treasury for safety. Again, have you wondered how the European crisis would end?

The above theory was posted in possible blueprint to easing global worries, ECB/IMF theory on November 22^nd. 2011.

 A Reuters report dated Nov 29^th mentioned,

“Belgian Finance Minister Didier Reynders said European finance officials will discuss the possibility of the ECB lending to the IMF. Finance officials will offer some proposals, he said, but it is up to the ECB to decide.”

IMO, since the above mentioning by the Belgian FM is being discussed; it would then be a probability for European countries to tap this facility from the IMF with the ECB backing up with funds. Would 600B be sufficient for Italy to tap on? Would this ease the European crisis?

Would Germany/Angela Merkel support this probability or go against the proposition? If favorable, the market would begin to have a nice rally until year end, otherwise I suspect it would be the end of the Euro unless there are other avenues which I have not thought of! And what does the end of the Euro mean? There won’t be any ‘Christmas’.

Why the end of the Euro? Italy is one of those “too big to fail”. If Italy falls, the rest of Euro will fall. I dread this would happen because Germany and France understands this and would never allow Italy to fall!

On a related issue, the US dollar index is still stubbornly trading at 79 thereabouts. Most of the scenes in this act tell me that there will be a ‘breakout’ from this trading range very soon.