Bullard: Fed can’t react every time Europe poops the bed

That’s a paraphrase, of course, but it pretty much sums up his attitude.

• Events in Europe will roll on a long time; not reasonable for Fed to react every time the situation gets hotter
• ECB is clearly determined to stand behind European banking sector
• Situation in Europe is grave because pan-European institutions that could address crisis do not exist
• LTRO was more effective than SMP (bond buying)