Over the weekend it was announced that Spain would receive a bailout of up to $120 bilion to shore up its banks that are smarting from a real estate downturn and a poor economy. Asia loved it, European stock traders loved it for a few hours and US investors loved it for a few minutes. By the end of the day the S&P 500 stock index was down 1.25%. Gold was up 0.4%. More on this later.
I am in a conference Tues and Wed and if I post anything it will likely be late in the evening. I really don’t like the response to the bailout. It seems to signify that more of a drop in stocks is likely in store.