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As You Buy This Week

posted Jun 10, 2012, 5:12 PM by Teddy Rounders   [ updated Jun 10, 2012, 5:12 PM ]
I am watching these markets and listening to all of this hype coming out of Europe over the weekend and have some lingering questions that still need to be answered. 

  1. If everyone is so certain there is in fact going to be bailout of Spanish banks what changed in Germany from May 30, 2012 and this weekend 
  2. Why is it still unclear who will actually be funding this bailout the ESM or the EFSF? 
  3. How do you reasonably expect Spain to receive an UNCONDITIONAL bailout and Germany and other Northern European countries to simply comply with this? 
  4. If you agree with the premise that Spain will receive and unconditional bailout and have it blessed by the Northern Europeans, what makes you think Greece, Ireland, and of course the looming largely in the background Italians will not want the same unconditional bailout? 
  5. Does this Spanish bailout negate the fact that Morgan Stanley and other US banks are facing a down grade and subsequent margin hike from Moody's this week? 

While I agree with the premise that there will in fact be a bailout and there will in turn be a market reality. The larger issues at play in the global economy will soon being investors back down. Happy trading and be careful out there...