A matter of certainty
After negotiating a sizable haircut on Greek debt and pushing through an expansion in the EFSF we have seen markets rally.
The current crisis has very much been one of people wondering “who the hell will bear the burden of default”. The closer we get to solving that question, the closer we get to putting this junk behind us.
I don’t like how people are calling these things “buying time” – in reality there just needs to be a clear set of policies set down, and a clear lender of last resort for the regions banking sector. Get those things in place and the crisis will get the hell out.
There has been progress this month, but the international situation is still pretty weak.