Stock markets around the globe reacted positively to yesterday's announcement by the Fed that it was reducing the rate at which its lends dollars to other central banks and hence the international banking system. Does this mean that the Fed has become the international lender of last resort? It is certainly a major step in that direction. However, it also signals that the Fed (and other central banks) believe that the Eurozone is going to implode. If that happens, major European banks will face massive liquidity problems as depositors and lenders run banks before the euro is devalued. The Eurozone endgame began yesterday. Stock markets around the globe reacted positively to yesterday's announcement by the Fed that it was reducing the rate at which its lends dollars to other central banks and hence the international banking system. Does this mean that the Fed has become the international lender of last resort? It is certainly a major step in that direction. However, it also signals that the Fed (and other central banks) believe that the Eurozone is going to implode. If that happens, major European banks will face massive liquidity problems as depositors and lenders run banks before the euro is devalued. The Eurozone endgame began yesterday.