We will do whatever it takes, we will reduce PIGs borrowing costs, we will not let the Euro fail, blah , blah, blah, promises promises. Even the Yanks in the person of Timothy Geithner are spewing out the rhetoric like a grumbling volcano. But action, and more important comprehensible action, that will impress the markets, no none of that.
There have been numerous schemes floated, most are incomprehensible to me, and come into the smoke and mirrors category in my view. There is the usual pre grande vacances meeting of the ECB council tomorrow, Thursday 2nd August of which great things are expected across the pond. The Yanks do not understand the EU elite. The purpose of this meeting is to produce sufficient hot air to befuddle the journos so the Euro political elite can have a nice quiet month off in the Med and keep the lid on things until September.
Will it work? The EU journos and BBC types also like their month off so there will be a tacit deal not to cause problems until September. Unfortunately markets now trade 36 days of the year in places with huge amonts of cash, bonds and equities eg Singapore, HK, Tokyo and Mumbai. The wily oriental gentlemen may not be so keen to play ball with the EU given the amount its costing them.