Broad stock indexes fell sharply in midday trading as concerns grew that the European financial crisis will spread.

Ireland formally asked for help from its neighbors over the weekend after falling into a financial crisis brought on by losses at the three banks the country nationalized. Details of the loan package were still being worked out, but Irish Finance Minister Brian Lenihan has said the rescue would not exceed euro100 billion ($137 billion).

It was the second time that the European Union has come to the rescue of one of the 16 countries that use the euro. In May, the EU and the IMF committed $140 billion to Greece to prevent the country from defaulting on its debt. Euro zone members have been willing to prop up each other's finances in hopes of avoiding a financial crisis that could cause the value of the euro to plummet.

Ireland's request initially pushed stocks higher in Europe. But the Euro Stoxx 50, an index of blue chip companies in countries that use the euro, fell 0.6 percent in afternoon trading there.

The Dow Jones industrial average was down almost 90 points in midday trading.

Ireland's request for assistance does not put an end to the questions facing the euro zone. Fellow members Spain, Portugal and Italy are also saddled with heavy debt burdens and investors fear that they may also need a financial lifeline from other EU members. The euro fell 0.8 percent against the dollar.

"It's been difficult for the European Union to get ahead and stay ahead of the market's concerns, despite the large sums they are clearly willing to dedicate," said Robert Tipp, the chief investment strategist for Prudential Fixed Income. Ireland's announcement that it would seek assistance contributed to stock losses because it was not detailed enough to restore investor confidence, he said.

Doubts about the central bank's ability to expand its bond-buying program have driven Treasury yields higher.

Criticism of the Federal Reserve's latest bond-buying program, both from insiders and from U.S. politicians, is muting the plan's potential benefits for the economy.

Amid widely publicized skepticism about the efficacy and wisdom of the bond buying, investors and traders are questioning whether the Fed would be able to expand its bond purchases beyond $600 billion—even if inflation continues falling and unemployment remains high. Those doubts have contributed to an increase in yields on U.S. Treasury bonds since the Fed announced the program on Nov. 3, they say.

The criticism "has raised questions about the Fed's ability and resolve to control the yield curve," said Mohamed El-Erian, chief executive and co-chief investment officer of Pimco, the bond-fund giant. "The criticism has unsettled markets naturally inclined to worry about the politicization of the Fed and its loss of autonomy," he said.

The success of the latest round of quantitative easing, or QE2 as it is known, hinges on shaping public and market expectations. The more the public and investors believe the Fed is likely to keep buying bonds to depress long-term interest rates until the economy comes back, the more likely the markets are to keep long-term rates from rising.

Communicating a willingness to do more bond buying if needed despite dissent from inside the Fed and political pressure, primarily from Republican politicians and their advisers, is proving a challenge for Fed Chairman Ben Bernanke and a policy-setting committee with a diverse set of views.

Consumer prices rose moderately in October but there was little sign of inflation as the cost of autos, clothing and hotels fell.

The Consumer Price Index rose 0.2 percent last month, the Labor Department said, mostly due to higher gas prices.

But excluding the volatile energy and food categories, the core index was unchanged for the third straight month. In the past year, core prices have risen by only 0.6 percent, the smallest annual rise since the index began in 1957.

The weak economy is keeping a lid on prices. Consumers, facing high unemployment and slow wage growth, are restraining their spending. Retailers and other companies don't want to risk losing frugal shoppers by raising prices.

The report provides support for the Federal Reserve's recent moves to boost the economy. The central bank said earlier this month that it would buy $600 billion in Treasury bonds in an effort to lower interest rates and spur more borrowing and spending.

That decision has come under extensive criticism. Many leading Republican economists said earlier this week that the Fed's actions risk triggering runaway inflation.

But several economists said Wednesday's report shows that concerns about inflation are misplaced.

"Fears about a potential outbreak of inflation from the Fed's recent moves are massively overblown and are completely out of sync with the reality of extremely competitive markets for ... products and services," said Brian Bethune, an economist at IHS Global Insight.

Record company Warner Music Group Corp. said Wednesday that its fiscal 2010 fourth-quarter loss widened on lower revenue, reflecting the continued shift from CD sales to digital music.

The company lost $46 million, or 31 cents per share, compared with a loss of $18 million, or 12 cents per share, during the same period a year prior. Revenue fell 13 percent to $752 million from $867 million. The fourth quarter ended Sept. 30.

Analysts surveyed by Thomson Reuters expected a loss of 13 cents per share on $731.7 million in revenue.

"The company's revenue results continue to reflect the transition from physical to digital in the recorded music industry where increases in digital revenue have not yet fully offset the declines in physical revenue," the company said in a statement.

Revenue from recorded music fell 13.3 percent to $619.9 million during the quarter, with the U.S., Japan, and most of Europe the weakest markets. But digital revenue from the sector rose 7 percent to $183 million.

The most beloved capitalist in the world, Warren Buffett, has written another charming, thoughtful article in the New York Times.

And this one will make a lot of Americans furious.

Buffett's article is a "thank-you note" to our government, thanking them for the bailouts and emergency actions that Buffett says saved America from economic Armageddon two years ago.  Although people will always criticize the details, Buffett says, they can't criticize the outcome, which was remarkable:

"Uncle Sam, you delivered. People will second-guess your specific decisions; you can always count on that. But just as there is a fog of war, there is a fog of panic — and, overall, your actions were remarkably effective."

Buffett makes a compelling case that, if the government had done nothing in the financial crisis, the financial system and economy might have collapsed, at least temporarily.  And given that the system did NOT collapse, the government's intervention certainly was commendable.

But, as many people have already pointed out, no one benefited more from the bailouts than Warren Buffett, so it's no surprise that he's grateful.  Most bailout critics, furthermore, don't suggest that the government should have sat around and done nothing--they argue that the government's intervention should have been more fair and effective, particularly with respect to Wall Street.