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Discord among European Union policymakers over how to stop a disastrous spread of the sovereign debt crisis has caused increasing frustration among investors. With this in mind, Cramer plans to closely watch Europe starting Sunday. After all, he said our week of trading will be determined by what the Europeans do Sunday night.
As it stands, European countries, including Ireland, Spain, Portugal, Greece and Italy, have issued far too many government bonds than they can afford to pay the interest on, Cramer said. Everyone who owns these bonds, including many European banks, is about to lose a huge amount of money as these countries "keel over."
So what do we want to see?
"We want a worldwide intervention where everyone from our fed to the Chinese come in and buy these sovereign bonds at a discount from the holders. This is the moment where the Chinese can make a statement that they want to be part of the commonwealth," Cramer said. "If the Chinese step up to the plate and help, and they certainly are the only people on earth with the balance sheet that can do this, the problem can actually be solved."
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