Thurs 11.10.11

No comment today, so just my take.....First off, the market is looking green today as Italian bond yields have dropped below 7%, and investors look to take advantage of yesterday's huge sell-off. However, investors are starting to circle France, as the spread b/w French 10-year bonds and German bunds is rising to a high of 170 basis points. The higher the market prices France's bonds, the more worried investors become, thereby increasing the bond yields, eventually making higher future borrowing costs a "self-fulfilling prophecy". However, France has more levers than other European countries, including eliminating tax loopholes for businesses, and cutting spending, although this would not be viewed favorably by its citizens. But, enjoy today's rising stock market, and tomorrow Veteran's Day.