Late afternoon and the financial index is down over 1%, JPM down 8%, Wells Fargo down 11%, GE was down 10% (now 5%). And the market is up over 3%. I think adds evidence that these financials at this point are less important than the media would have you think and not driving the overall market. (several days like this and the markets would follow in sympathy) Europe was off like a rocket today and you can see heavily sensitive European names leading the charge completely ignoring the continued financial chaos.
This may be why though like the U.S. plans it is light on specifics and misses a big part of the issue. Thanks goes to Pete.
Europe's financial authorities have revealed the existence of a contingency plan to rescue eurozone states at risk of default, giving the first clear assurance that the EU will mount a defence if monetary union comes under speculative attack.
This next part is funny.
Mr Almunia said the probability of a eurozone break-up is "zero", despite the surge in interest spreads on Greek, Irish, Austrian, and Italian 10-year bonds above German Bunds. "Who is crazy enough to leave the euro area? Nobody. The number of candidates to join is growing," he said.
The ECB is expected to cut rates from 2pc to 1.5pc on Thursday, and is exploring options for "quantitative easing" along US, British, and Japanese lines.
The ECB is actually getting on board? This next part is very important because nothing is still being done on Eastern Europe.
Mr Almunia's promise of a eurozone bail-out is certain to anger East European leaders. They were denied backing for Hungary's €190bn plan to prop up the region's financial system at an EU summit over the weekend. They were advised to look to the IMF instead for external support.