If you cannot do anything right sometimes is better to leave things the way they are. This is how I feel after the announcement of Angela-Nicolas meeting.
The solution from the German-French meeting is not what will solve this crisis. As I said before there are two outcomes out of this mess: either get rid of the problem countries or create a European Ministry of Finance.
The no Eurobond, keep EFSF the same and taxes on financial transactions solution will not do it. In fact I think it will do more harm and we would have been better off without this meeting. I do think that the banking sector has to own up to its losses but taxing them will not do that. In fact higher taxes on financial transactions might push away from the market companies that need hedging, investment or saving products.
Financial Markets will not like the solution. In fact nobody will like this solution. I keep my view that Euro is headed for more trouble, spread for troubled countries in Europe will widen, US yields will fall further emerging markets will lose momentum due to lower demand from developed economies.