SOVEREIGN CREDIT RISK

European Credit risk is climbing very fast. Portugal, Ireland, Spain, Italy and UK are seeing their risk in a very, very unconfortable position...

Who is taking care of the mess if anybody defaults ??? And the € ???

WIZ

THE BEARS...

By now we are at the levels of 1973/1975 downturn... It seems to me that Mr. Market is not discounting everything yet (credit crunch phase II, elusive bottom of House market and the companies earnings).

So probably, we have a long way to go.

WIZ

PROTECTIONISM, SP500: 650

The definition of Protectionism is : The economic policy of restaining trade between nations, through methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations to discourage imports and prevent foreign take-over of local markets and companies.

If we do not start taking care of the Global metldown ASAP, Protectionist calls will pressure for "jobs at home" in every country and the threat of protectionism will become real...

Anyway, we continue with unreal stock valuations and "hope" still with us... Breath in markets has been abysmal and indicators show the worst in many decades is coming. Meanwhile markets stay resilient to the reality...

New bottoms loom ahead. Maybe SP at 650 is not far form us.

WIZ 

TREASURIES YIELD CURVE

The Treasuries Yield curve steepened sharply as the Long term yields rose ahead of US Government borrowing while the short end is anchored by the near zero Fed-funds rates...