Reinstill Market Confidence

The Weekly Bottom Line : 28/10/2011 HIGHLIGHTS OF THE WEEK United States Policymakers in Europe met this week to hammer out a three point plan to save the euro zone. The plan includes a 50% voluntary write down of Greek debt, a strategy to recapitalize the European banking system, and a plan to optimize the use of the existing bailout fund (the EFSF) to safeguard the debt of other vulnerable sovereigns. The plan is a step in the right direction, but its success will depend on a number of factors that are as of yet unknown. Even more than that, it is contingent on the euro zone economy avoiding a significant deterioration in the economic outlook. In the United States, the Obama administration's plan to reform the Home Affordable Refinancing Program should give some support to ...