- Important to boost EFSF because markets doubt our ability to act if needed
- Financial crisis partially caused by speculative actions against some countries
- Believes strengthening of EFSF will be approved
Earlier today S&P rated the first EUR 250 bln in EFSF bonds as AAA. Perhaps they will try and buttress the entire fund so all its bonds receive AAA status…
EUR/USD is easing as risk aversion rises in afternoon trade. Stocks, yields and commodities are all lower this afternoon. It trades now at 1.3464.
