Last week's newsletter focused on Monti and Rajoy forcing Europe into true EuroTARP as the chief headline coming out of the latest European summit. A lot of other commentary focused on the agreement to let the ESM/EFSF buy up sovereign bonds. But I don't think this is significant because the EU bailout funds are still too small to deal with either Spain or Italy. On the other hand, for Spain and Ireland, the potential of getting away from contingent domestic banking sector liabilities is meaningful. And Ireland's ability to tap bond markets this week is testament to that fact.
The Europeans put the decoupling of bank distress and sovereign risk at the center of their post-meeting Memorandum of Understanding. Along those lines Rajoy and Monti were able to get Merkel to ag...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.