The Rain in Spain

You've got to give her some faith, hold her tight
A little tenderness, you gotta treat her right
--Bryan Adams

John Mauldin wonders whether the probs in Spain, previously thought to have been pushed out at least a year, will reveal themselves much sooner.

Me2. Until last week, markets seemed pretty much unfazed by the happenings in Spain over the past month.

Hard not to theorize that market discounting mechanisms have been impaired by central bank money printing. Every systemic problem finds markets crying for another fix...and central banks providing it. Markets are thus assuming ever more relief in a classic moral hazard setup.

However, Spanish market market participants seem to be waking up to reality, as Spanish stocks have now given back nearly all gains off the Spring 2009 lows.

Will US markets follow?

position in SPX