Eurozone Bailout: Will It Work?

A lot of hope regarding a solution to the eurozone sovereign debt crisis has been pinned to the upcoming EU Summit on Oct. 23 and the G20 meeting in November in Cannes, France. The markets (S&P 500, commodities, German index DAX, EUR/USD etc.) rallied strongly since Oct 4. when the Financial Times reported (very timely around 3 p.m. NY time, one hour before the market close) that European leaders are working on a plan to recapitalize the European banks. This wasn’t the first time the rescue effort had been talked about, as Telegraph had reported on Sept. 24 2011 that a multi-trillion plan to save the eurozone is being prepared.

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