OH SURPRISE - WAKE UP EQUITY MARKET Germany said European Union leaders wonât provide the complete fix to the euro-area debt crisis that global policy makers are pushing for at an Oct. 23 summit. German Chancellor Angela Merkel has made it clear that âdreams that are taking hold again now that with this package everything will be solved and everything will be over on Monday wonât be able to be fulfilled,â Steffen Seibert, Merkelâs chief spokesman, said at a briefing in Berlin today. The search for an end to the crisis âsurely extends well into next year.â Group of 20 finance ministers and central bankers concluded weekend talks in Paris endorsing parts of Europeâs emerging plan to avoid a Greek default, bolster banks and curb contagion. Providing a week to act, they set the Oct. 23 meeting of European leaders in Brussels as the deadline. On the summit agenda is how any recapitalization of Europeâs banks âmight be carried out in a coordinated wayâ and how to make the European Financial Stability Facility, the EUâs rescue fund for indebted states, as effective as possible, Seibert said. The leaders will also discuss aid for Greece and ways to tighten economic and financial policy, he said. The euro retreated as much as 1 percent to $1.3739 from a one-month high against the dollar after Seibertâs comments. The currency last week had its biggest gain in more than two years on speculation that policy makers were moving closer to stemming the crisis. German 10-year bonds rallied and the Stoxx Europe 600 Index reversed an advance of as much as 1.5 percent and was down 1.4 percent at 4.45 p.m. in Frankfurt. âDisappointment Tradeâ Seibertâs statement âmoved the disappointment trade to this morning,â Carl Weinberg, founder and chief economist at High Frequency Economics, said today on Bloomberg Television. âWeâre looking at a really big disappointment if we donât get a funded, operational and agile response to the bank recapitalization problem as soon as possible.â Two years to the week since Greece triggered the turmoil by revising its budget math, policy makers face increasing calls from the U.S. and other global partners to stamp out the turmoil that has pushed the Greek government to the edge of default and the European economy close to recession. The outlook for German economic growth has worsened as companies cut their business expectations and foreign orders decline, the Bundesbank, Germanyâs central bank, said in its monthly report today. FULL STORY http://www.bloomberg.com/news/2011-...arly-end-to-europe-sovereign-debt-crisis.html