In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 7/22/2012.
After market strength during the early part of the week, some reality set in as the major indexes sold off sharply on Friday ending the past five trading days with a minor gain.
Europe made front page news as interest rates in Spain (10-year bonds) have now solidly broken the 7% level to the upside and are hovering close to the 7.5% mark. This is a level that is unsustainable and Spain, for all intents and purposes, has now been shut out of the public markets to meet borrowing needs.
Saturday, the news got somewhat worse in that 6 out of Spain’s 17 autonomous regions have now essentially run out of cash and need to borrow from the central government, which in turn needs to borrow from whomever they find willing and able.
Clearly, the markets will have to wake up to the fact that the end of the road may have been reached, at least for Spain, and the dreaded “D” word (as in default) may have just been added to public vocabulary, unless some white knight appears and provides fresh can kicking euros. I’m curious how politicians will now deal with this latest setback.
Over past week, we covered the following: