Not good, but there aren't many (if any) good options left at this point. The EU's attempt to fund the mega-bailout was less well received than expected and it's not like the US can do more than the billions already lent out to EU banks during the US bailout.
Euro zone ministers agreed to ramp up the firepower of their rescue fund, but couldn't say by how much, and may turn to the IMF for more help as a stunning leap in Italy's borrowing costs pushed the region closer to financial disaster.It would be interesting to hear what the architects of the current EU think about their plan now. The entire process always struck me as rushed, with too many corners being cut. The political class of a certain generation always wanted as their crowning achievement, facts be damned. So far they've all received a free pass but it's about time they're held accountable for this mess.
Two years into Europe's sovereign debt crisis, investors are fleeing the euro zone bond market, European banks are dumping government debt, south European banks are bleeding deposits and a recession looms, fuelling doubts about the survival of the single currency.
"The situation in Europe and the world has significantly worsened over the past few weeks. Market stress has intensified," said Christian Noyer, France's central bank governor and a governing council member of the European Central Bank.
