German Thumbs Down

Here comes the rain again
Falling on my head like a memory
Falling on my head like a new emotion
--Eurythmics

Over the weekend,German Chancellor Angela Merkel's party was defeated in a Berlin state election. The defeat casts doubt on continued German support of EU bailouts.

Germany is the 'have' while nearly all of the the other EU countries are 'have nots.' The multi-trillion dollar question is whether the haves are willing to bail out those who have acted imprudently.

These election results suggest that the answer to that question is 'no.'

Markets are off sigificantly this am.

position in SPX