Drifting lower on the lowest volume of the year. More skeletons coming out of the closets. Politicians big on talk, but little on any real action leading to any real solutions. Europe continuing to destabilize:
Today, Merkel's CDU party voted to offer euro states a "voluntary" means of leaving the currency. I guess she's finally realizing that Plan A wasn't working... here's another hope for a plan. Not a good sign for the stability of the Eurozone or the euro. EU Politicians are so behind the curve in getting in front of the issues. Very reactive... not good for confidence.
Italy sold 3 billion euros of five-year bonds for 6.9%, the highest yield in 14 years! Not a good auction. Still unsustainable.
Spanish 10-year yields were up 25 basis points to 6.11%. More signs of contagion spreading to Spain.
Monti and Papademos are in the honeymoon phase, but it doesn't look like things will look rosy afterwards. Change in leadership, but not a change in problems. There are still major uphill battles ahead to fix the austerity and growth problems in Europe. Markets appear to be stuck like a deer in the headlights not sure what to do. Any major negative headline could kick off another cascading round of selling.
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