What could have been a good week in the US after several good economic reports was spoiled by worsening debt troubles in Europe. See my newsletter posted today for more details.
For the week, the market lost 3%, high quality bonds lost 1.1%, gold lost 3%. The dollar was up 1.1%. Europe lost 3%.
The US is near a good support level but more bad news on Italian and Spanish bond yields might drag us down through that.
Spain likely elects a new government this weekend. My guess is that they will find some significant economic dirty laundry left by the last administration. While our administration and Congress are frustrating, I sure would rather live here than Europe. On the other hand, even though it is messy and painful with worse consequences than they thought, at least Europe is reforming while the US just dithers away, kicking the can of reckoning down the road.