When the dust settles, the Euro will be lucky to stay above par.
* * * * * J B K * * * * *
San Francisco
May 6 (Bloomberg) -- European Central Bank President Jean- Claude Trichet resisted pressure from investors to take new steps to fight the euro-area's spreading fiscal crisis.
Trichet said the ECB didn't discuss buying government debt today and that Spain and Portugal don't have the same challenges as those faced by Greece, which needed an international bailout last week. European officials should instead intensify efforts to cut budget deficits, he said.
"We call for decisive actions by governments to achieving a lasting and credible consolidation of public finances," Trichet told reporters today after the ECB's Governing Council met in Lisbon. Spain and Portugal are "not Greece," he said.
The euro fell to its weakest level in 14 months after the comments. Trichet is trying to convince investors that turmoil in euro region markets will be containable once the Greek government draws on its 110 billion-euro ($140 billion) aid package and implements an austerity plan.
http://www.bloomberg.com/apps/news?pid=20601068&sid=aeiaj8kohS2A
