An enormous show of strength from both the Eurozone and IMF may have stemmed the previous Eurozone credit rout, but it seems that its effects are fading.

1) Yesterday credit default swap spreads exploded higher for Europe's periphery 'PIIGS' economies, approaching the dangerous record highs pre-Eurozone bailout.

Those spreads continued to expand today, reflecting even higher default risk.

2) Moreover, the Wall Street Journal reports today that ECB overnight deposits have hit a record high. Usually banks just park a few hundred million euros with the Central Bank using this facility, since they get subpar interest on their capital. They have now chosen to place 316.4 billion euros in ECB deposits, as perceived counterparty risk (the risk between banks) is soaring.

3) The euro is now breaking below $1.22.

All three of the above three measures are looking about as ugly as they ever did. It seems the market has now deemed Europe's tough talk and enormous bailout plan as insufficient.

The crazy thing is, if Europe has already fired the big guns, and still wants to stubbornly defend every nation within the Eurozone, then what does it have left to use?