The European crisis continues to dominated markets all over the world and Moody's Investor Service dimmed its outlook on Germany further exasperating the situation. Rising bond yields in Spain and Italy are a function of the European leaders not doing enough to promote confidence and resolve the crisis. By the constant posturing and threatening, European leaders have only shown a willingness to make things happen when the markets force their hand. The situation might have been much different if the European would have instituted a TARP-like program in addition to the LTRO. Euro-bonds are still the only real solution that makes sense long term for the EU. Politicians have also fought tooth and nail to prevent the ECB from buying debt issued by peripheral countries. While there has been progress it has been done in a slow and exasperating way which has roiled confidence, and decreased investment. This in turn has hurt these debt-ridden economies much more than they would have been hurt if quicker resolution would have occurred. While progress is made cutting expenditures, reduced growth prospects is making the job that much harder. Until Europe realizes that it's "all hands on deck" to fix the problems, volatility will continue to reign supreme.