To Lever EFSF or Not Lever EFSF, That Is The Question And Whether 'Tis Merkel Or Juncker, It Appears We All Suffer From Uncertainty

Tyler Durden's picture

The last few days have seen a veritable avalanche of to-ing and fro-ing among the various players in the Shakespearean melodrama that is Europe. While their quotes and headlines have all too often just run in circles, we thought the compare and contrast of Ms. Merkel and Mr. Juncker was particularly intriguing, to wit:

 

*MERKEL SAYS MAY BE NEED TO RECAPITALIZE BANKS, NOT YET SURE

*MERKEL SAYS CRITERIA NEEDED TO ASSESS BANK CAPITALIZATIONS

*MERKEL SAYS STATES OR EFSF CAN RECAPITALIZE BANKS

*MERKEL SAYS EFSF CAN BE USED AS LAST LINE TO RECAPITALIZE BANKS

*MERKEL SAYS EFSF FOR USE ONLY WHEN EURO AS A WHOLE IN DANGER

But...

*JUNCKER SAYS EFSF COULDN'T HANDLE ANY ITALY RESCUE

*JUNCKER SAYS MUST USE EFSF AS EFFICIENTLY AS POSSIBLE

*JUNCKER DOESN'T SEE ECB INVOLVED IN FUTURE EFSF LEVERAGING

*JUNCKER SAYS EFSF CEILING SHOULDN'T BE RAISED

*JUNCKER SAYS EU CRISIS RESPONSE IS LAGGING MARKETS

Source: Bloomberg