On the second day, markets did not roar. Instead, in the wake of Angela Merkel and Nicolas Sarkozy's announcement of their "comprehensive" plan for new fiscal rules in the eurozone, they went sideways. The subdued reaction probably had little to with Standard & Poor's threat to downgrade the credit ratings of all members of the eurozone. Rather, the problem is that Merkel and Sarkozy left so many loose threads. First, their plan seems to rely on the European Central Bank swallowing its scruples and announcing that it is prepared, in effect, to finance Italy and Spain if necessary. That is because Merkel and Sarkozy ... (full story)