Great post pisces,I think it's fair to say we all wish it was...

Great post pisces,

I think it's fair to say we all wish it was bullish times & nobody wants to maintain a pessimistic outlook on the markets.... but the Euro situation is a spectre that will hang over the markets for the time being, not wise to ignore it.

My disclosure says no stocks held but I'm 50/50 at the moment and may even shed a few more, feel a lot more relaxed when you're a little hedged than being all-in in this economic climate.

So back to the Euro situation, there is a good blog on a couple of stories in the Telegraph, many expecting Merket to bend and yield to the Eurobond but she's in no rush:

UK Banks Brace for Eurozone Break-Up; Eurogeddon and the Death of a Currency

Speculation that Germany wants austerity measures passed in law so there is recourse for those doing the bailing out to take action, to persuade countries that have exercised little or no fiscal discipline in the past not to go down that road again.

Does Germany have time though? A trickle of downgrades of late threatens to become an avalanche with consequences for the bond markets.

Banks have started to consider the ramifications:

Banks Beginning to Consider Consequences of Breakup of Euro Currency

The main danger of a euro breakup, said Stephen Jen, managing partner at SLJ Macro Partners in London, is "redenomination risk". This is the unpredictable effect that a euro breakup would have on financial assets. Newly created currencies that would replace the euro in their native countries would seek their own levels in the market and the value of contracts drawn up in euros would come into question.

A bit more on the consequences:

Credit Suisse: Here Are The Disastrous Consequences Of A Euro Break Up

Some great charts posted and enjoyed haspete's rundown on the DJIA, love haspete's work and I'm keeping his chart in mind in the context of this Euro scenario.

Beautiful Sunday morning here on the east coast after days of rain....not befitting such a pessimistic post. At the same time an ill wind has just started to blow :)

Safe trading all.

cheers