By Greg Peel

The Dow fell 179 points or 1.6% while the S&P dropped 2.1% to 1151 and the Nadaq lost 2.2%.

After a couple of strong sessions in global markets the risk was always that the euphoria would wane between Eurotarp proposal and delivery. We know full well that Europe never does anything expediently, hence to propose a Eurotarp or something like it is one thing, but to actually reach agreement amongst all members on its form is very much another. The longer it takes, the more impatient the market will become.

There was not much going on in last night's episode of In Europe Tonight other than a positive vote for the EFSF in the Finnish parliament. This is not insignificant given Finland is the one member causing problems with the proposed second bail-out fund for Greece by demanding collateral against its contribution. The EFSF is another matter nevertheless, and we have to get that established before it is decided what to do with the E440bn, with the current proposal being to leverage it up into a Eurotarp. It is probable that what transpires will negate the proposal for a second Greek bail-out fund anyway.