Last night was a significant event and not only technically...

Last night was a significant event and not only technically speaking. The cost of doing business has just just spiked overnight and from a historical perspective this will not resolve overnight. As I stated in the Brisbane meeting in March I believe that the market was about 30% above valuation and after last night that has gone up again further.

Why? I have mentioned it previously but I think that it is better illustrated through this Bloomberg article on Credit Default Swaps

http://www.businessweek.com/news/2010-05-07/bank-risk-soars-to-record-default-swaps-overtake-lehman-crisis.html.

Even though there might be a rescue package to Greece many nations are now carrying the 'bank' problem following the bailout packages. If you want to look at a similar scenario - there was a similar sovereign debt problem in 1931. There are many articles on the net if you are interested.

This is the time for capital preservation and not speculation.