The government is trying to fix the economy not just by cutting the deficit, and eventually debt, but also by trying toget the economy into the right shape so it can compete internationally.
So, given the idea that the economy is improving, traders are able to avert their attention from the misery that is the European debt mess and getinto the holiday spirit.
If an inevitable Soviet debt rescheduling is undertaken now, we can clear the decks albeit with substantial pain of pre-coup communist debt and getto the task of working closely with the most reformist republics to bring them into the Western economic and financial community.