Monday, October 17, 2011

Countdown to Euroday Oct 23rd: Lowering Expectations

by Bill McBride on 10/17/2011 02:38:00 PM

From the WSJ: Merkel, Schäuble Temper Expectations for Summit

German Chancellor Angela Merkel expects a package of measures towards solving the euro-zone debt crisis to be agreed on Oct. 23, but warned against hoping that all of Europe's debt woes would be resolved ...

Spokesman Steffen Seibert said a "package" of measures would be agreed upon at the European Union summit in Brussels this coming Sunday, but "the chancellor reminds [everyone] that the dreams that are emerging again, that on Monday everything will be resolved and everything will be over, will again not be fulfilled," Mr. Seibert said.
From Bloomberg: Germany Shoots Down ‘Dreams’ of Swift Fix
On the summit agenda is how any recapitalization of Europe’s banks “might be carried out in a coordinated way” and how to make the European Financial Stability Facility, the EU’s rescue fund for indebted states, as effective as possible, Seibert said. The leaders will also discuss aid for Greece and ways to tighten economic and financial policy, [Steffen Seibert, Merkel’s chief spokesman] said.
Officials have been trying to lower expectations for a few days. There are several stumbling blocks - especially the size of the Greek debt "haircuts" and how to recapitalize the banks.

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