A theme has emerged among policy makers in Europe: the rescue package buys time but does not solve the problem. We have seen announcements of further austerity from Spain and Portugal, but the market is still concerned that the action is insufficient to stem the tide of debt.
Ratings agencies suck is the other essential message from Bini-Smaghi. Can’t argue.
EUR/USD has fallen further, down to 1.2544, 34 pips above the 1.2510 low during the flash crash.
