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Investors are looking for a home for trillions in idle Federal Reserve-generated dollars, and a little reform in Europe might attract them.
The world is waiting anxiously for Europe to use a bazooka on its debt problems—i.e., to make such a strong financial commitment to European banks and bonds that they become investable again, unfreezing markets.
But Europe probably won’t go that far in this week’s summits. This leaves in place a costly slow-motion bailout and a deepening recession.