Markets are beginning to realize that there is a big difference between liquidity and capital. European banks may have gotten a liquidity life line, an important thing, but they still have capital issues owning to all the sovereign and bank debt they hold.
One problem has been alleviated temporarily. The other remains very much unsettled. The hope is that Geithner helps the Eurogroup come up with their own EuroTARP to quell fears of a deeper banking crisis.
