The value of the Turkish lira fell by nearly half against the dollar, a bevy of banks went under, and only a much bigger intervention by the Fund prevented wholesale meltdown.

ECONOMIST: Turkey

If we peer through the clouds of government intervention, massive hedge fund bets, high taxes, lackluster consumer confidence, political uncertainty, and various other market distortions, we should be able to see the true market at work.

FORBES: Market Madness, Rampant Irrationality, & Animal Spirits: What Are Investors To Do?

The timing of the fund's intervention is interesting.

WSJ: Euro-Zone Bailouts Leave Public Creditors at a Loss

The American investor and cofounder of the Quantum Fund has been critical of government spending and intervention in the markets and predicts it will lead to serious inflationary problems.

FORBES

But it is still permitted and if done, it will be led by the European Central Bank, allowing the ECB to use the 500bn euro fund in a way that fudges fiscal and monetary intervention.

BBC: Europe: Back from the brink

The government says it has included an allocation for the scheme up to 2013 in its early intervention grant to councils and is consulting on how best to fund the free nursery places from then on.

BBC: Free nursery places for 140,000 disadvantaged toddlers