The President of the European Central Bank (ECB) pledged to buy bonds if all austerity conditions are met which they most likely will not. After the announcement that the ECB would do whatever necessary to support the Euro, they then laid out conditions which would make such bond purchases less likely. The markets rallied when the ECB was apparently going to bailout countries such as Spain however Spain has indicated that they have no intentions of meeting the austerity conditions. It is a game of financial Chicken however I don't think there will be a winner either way.
Chinese exports grew by only 1% year over year last month and exports to Europe declined over 16%. Exports have been the greatest source of economic activity in China and they are slowing as Europe gets worse and US slows down. This will probably have a domino effect to countries such as Australia and Canada.
US consumer credit was up by $6.5 billion however credit card debt fell by $10 billion; student loans accounted for about $5 billion of the increase. Back to school sales did not cause a sharp rise in sales or credit which is normally expected each year. The expansion in credit of these student loans means that when the graduates start working (if they can find a job) will have all of this debt to pay back and less money to funnel into the economy compared to previous generations.