Will They Deliver This Time?

It’s come down to this — the latest summit of European leaders to try to tackle their worsening financial crisis concludes today. The market’s rally of the past two weeks seems to imply that investors are betting they’ll get it right this time. The definition of “getting it right” apparently consists of a credible framework for controlling future fiscal deficits, which would then provide cover for the ECB to buy troubled European debt on the open market with vigor in order to bring down the soaring interest rates of countries like Italy and Spain.