Yes folks, it's Bail-Out-O-Matic The European Union has created a permanent bail out fund:

Despite deep differences over how to contain their continuing debt crisis, European Union leaders agreed Thursday to create a permanent support fund for the euro after 2013 — something they hope will be a first step to calming the markets.

Leaders did agree, however, on the creation of a bailout mechanism that would operate after 2013, when the mandate of the current fund expires.

Yet even here, vital questions on the size and scope of the fund were left until the spring.

The new body, known as the European Stability Mechanism, will take over in 2013 from the existing 440 billion euro, or $582 billion, bailout fund.

Bondholders could be asked to shoulder some losses in future debt crises on a case-by-case basis.

To set up this facility, the European Union will have to revise its governing treaty, but it plans to do so in such as way as to avoid requiring referendums in any of the 27 member countries, all of which will have to ratify the revision.

AFP has more details:

Changes to the Lisbon Treaty were demanded by Germany to enable a temporary, trillion-dollar rescue fund to be turned into a permanent umbrella that will allow governments who fall on hard times to seek and obtain help from currency partners.

Moody's just downgraded Greece's credit rating to Junk, that's 4 steps of a downgrade.

Greece’s credit rating was cut four steps to non-investment grade, or junk, by Moody’s Investors Service, which cited the country’s economic “risks.”

The standoff is over. Greece made painful cuts, so the rest of Europe is stepping up to bail them out. Expect this scene to get replayed again in the coming years.

The EU Chamber of Commerce has released a report, Overcapacity in China: Causes, Impacts and Recommendations.

Overcapacity is a blight on China’s industrial landscape, affecting dozens of industries and wreaking far-reaching damage on the global economy

The reports says China's stimulus package has made this overcapacity much worse.

One of the problems is China dumps it's excess goods onto the market, selling them for much less than the cost to produce.

This hurts other national economies in terms of wiping out their domestic industries through unfair competition.

I think the report is a little polite, ignoring China's intentional and strategic market dumping and other strategies to capture yet another manufacturing sector for itself long term.