After failing to agree on much at this past weekends summit with assurances that all will be well at Wednesday's meeting, European leaders have already begun to employ the tried and true MBA method of "managing expectations." Notice how they are always managed 'downward'?
It's kinda like before earnings season, when companies lower their earnings guidance to the point where the final announced earning almost always surprise on the upside-- no matter how grim. Of course, it's easier for a citizen of a Euro-zone country to move out of the stock market than it is for him to leave the Euro-zone (Greece has already imposed a 15% tax on it's citizens who move their deposits from a Greek bank abroad...)
It began earlier today when the scheduled meeting for EU finance ministers was abruptly cancelled. If that wasn't a big enough hint a draft communique
was leaked to the FT after the market close. The document showed little in the way of resolving the relatively simple question of the size of the Greek haircut, let alone weightier issues like how the ESFS will be leveraged or by how much.
Note the weasel word "signalling" in the article below:
Fears euro summit could miss final deal -FT
By Peter Spiegel in Brussels, Gerrit Wiesmann in Berlin and Matt Steinglass in Amsterdam
Eurozone leaders were struggling on Tuesday to reach agreement on a much-anticipated deal to reverse their spiralling debt crisis amid mounting signals a definitive agreement would not be reached at a key summit on Wednesday night
Click to read the full story.
Perhaps if these esteemed leaders spent less time on "signalling" and "expectations management" and instead actually focused on solutions, we wouldn't need quite so many meetings (or PR Eurocrats, for that matter).
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