The term "kicking the can down the road" is no longer accepted phraseology to describe the European situation. The issue is loss recognition. Funding measures in the extreme (CCC- collateral) and re-profiling are ways to hold off that recognition until - presumably - financial institutions are better able to absorb the loss. Losses that make things go boom, like Lehman, scare people. We outlined last week why we don't see a system breakdown repeat but the example is now held out as a fear stick.
The 1 week MRO was a significant 187B Euros 51B over the maturing amount. This puts both dollar and Euro liquidity measures at recent highs. EONIA movement of the last 2 weeks should ease off some. Institutions have done everything possible on the liquidity front. Structurally, little has changed. Even here at home, debate is heated about what "should" be done in the near future. Meanwhile, nothing has actually occurred. On the bright side, significant losses have been adjusted for while accounting standards have been relaxed.
Loss recognition is an event that will allow markets to return to forward looking metrics and get out of the rear view mirror. The ambling, catatonic, crisis to crisis state we are living in is a result of loss avoidance. Burden Sharing. Voluntary. Group Hug. Clusterfuck. Pick any euphemism you like, let's just move on already.