Let’s try this again, shall we? This afternoon ~4:15pm to discuss EuroZone. Bullet points:
• Greece is a small dysfunctional economy with a disastrous set of policies — it will be painful, but not impossible for them to default or leave the Euro.
• Italy is a large robust economy with a disastrous set of deficits — it will be disastrous and impossible for them to default or leave the Euro. They will be bailed out or the Euro will collapse.
• Spain is a large dysfunctional economy; they cannot restructure or grow their way out of their problems — like Italy — and they cannot defaulty or leave the Euro like Greece. The options for EU policy makers re: Spain are terrible or awful.
• US Bonds remain a safe haven
More to come later.