Between a Crutch and Walking Stick

China and Japan are supporting the euro zone by purchasing government bonds that the market shuns today. China and Japan have US$ 4 trillion in foreign exchange reserves and are capable of bridging liquidity problems that some euro zone economies are facing.

What China and Japan can do is to stop market panic from leading some otherwise viable economies down a vicious spiral of rising interest rates, rising debt burdens and bankruptcy. Economies that are not viable in the first place shouldn't be helped.