3 indications that risk is back on, page-14

While I don't disagree with you on some points Morgsim, I think you're analysis stops one step too short. These problems most definately exist. And they will result in volatility. But you neglect to look at the 'solution', of which there is only one....QE, ie, the reflation trade. There is NO other way European governments can solve the problem. And the problem is not so much the countries with the debt problems, its the bank who own it. They will not let the major German and French banks fail, so they will reflate so that bank shares rise to a point that they can raise capital at a higher level and recapiitalise their balance sheets.

You can take that to the bank :) Gold can smell it already...

Equities, commodities and precious metals will be the beneficiaries.

You are quite right when you say its a traders market. It saw someone post on HC today that in 2006 & 07 only 11% of days were up or down by 1% or more. So far in 2011 its 45%! I can't verify that, its second hand info, so dont hold me to it, but it wouldn't surprise me if it was true.

BUT, I don't see leg after leg down as you do. I see it the other way round :)