UH-OH: AFTER ONE DAY'S RESPITE, EUROPE SLIPS BACK AGAIN

European stocks and the euro initially gained, and bond yields fell for euro-zone governments like Spain and Italy that had been under pressure of late. But by afternoon, equities markets were down slightly and borrowing costs for Spain and Italy rose again. 

In its role as lender of last resort to banks, the E.C.B. allocated 489.2 billion euros, or $644 billion, to 523 institutions, through what are known as long-term repurchasing operations. That was well above the roughly €300 billion average estimate of analysts polled by Reuters and Bloomberg News, though estimates had been widely divergent.

DSK RECENTLY SAID THE EU HAS WEEKS TO SAVE THE EURO AND THE PRESENT DEAL WILL TAKES MONTHS.

SEEMS HE IS RIGHT.

THE USA WILL HAVE A TOUGH TIME CLIMBING OUT OF THE DOLDRUMS WITH THE EU IN A SLOW MOTION DEATH SPIRAL AND THE CHINA BUBBLE BURSTING.

SIGH.