EeeeeUuuuu, that smells!

There are a few major things of concern to markets at the moment. First is Greece and the other PIIGS as there is a serious question on what EU will or is willing to do. Sure the market rebounded a bit when there was news the EU was willing to give Greece support but is seems this support, if it comes, has many strings attached. We will see what comes out of the meetings among EU big boys and girls the next few days. I personally am not optimistic that they will come out with a support plan that the citizens and unions of Greece will be willing to accept. Social unrest there could undo any purported EU support. And then the question becomes, what next? Both for Greece and the other countries of concern.

There has been a bit of relief in the markets the last couple of days on the news that Greece will be saved by the EU. Well, as noted above, "saved" is relative. I predicted in January of 2009 that the EU was in risk of losing its U and this was probably the prediction that at the time got the most negative responses, but my prediction is getting a bit closer to reality, though not perhaps in the year I predicted it. The following link provides a lot of good insight on the EU problems and I recommend it. Let me emphasize, this is a good piece on this issue so if you are interested in the issue - which may drive the market movemants globally for the next few weeks or months - please read this. If Greece, Italy, Ireland, Spain and the other countries are not going to get what they need in terms of financial relief, the U in EU is in some trouble - in my opinion.

http://www.spiegel.de/international/business/0,1518,676507,00.html

Disclosures: None.