‘Oil, shmoil, we can overcome’ says the US and European stock markets as the daily rise in energy prices can’t derail every equity dip being a perceived buy. While the US economy continues to improve, part of the resiliency has to also be the belief that the jump in energy prices is not sustainable but be careful believing that one as commodity prices had been on a relentless run well before Tunisia wanted change. The average gallon of gasoline over the weekend according to AAA did reach $3.51. Moody’s finally got ahead of the curve on a downgrade by lowering Greece 3 notches to B1 and is now 3 notches below S&P and Fitch. Greek yields and CDS are back near record highs and its taking Portuguese and Irish yields to recent highs too. Notwithstanding this, the US$ is no safe haven as the Euro is above $1.40 as Trichet has a different view of the role of a central banker than does Bernanke.
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