Summary Box: Europe's debt woes show global markets still fragile

NOT OUT OF THE WOODS: Federal Reserve Vice Chairman Donald Kohn says U.S. financial conditions have improved, but debt problems in Europe show that global markets are still fragile.

FED TO THE RESCUE: The Fed is lending dollars to other central banks in exchange for their currencies. In turn, the central banks can lend the dollars to banks in their home countries to prevent the crisis from spreading further.

FEARS OF CONTAGION: The European crisis erupted in Greece and there are fears that it could spread to Spain, Portugal and other eurozone countries.