Rallying European stocks and bonds reflect a growing belief that both the euro zone and the European Central Bank are at last taking the correct policy actions to combat the region’s debt crisis. But it is premature to claim victory. The financial resources remaining to deal with the crisis may be insufficient. The amounts available have not changed for almost two years, with little appetite among “permanent creditors” such as Germany for increasing commitments. The major bailout facility — the European Stability Mechanism (ESM) — has total lending capacity of around 500 billion euros /quotes/zigman/4867933/sampled ... (full story)