Will Germany Kill the Recovery?
The markets have been relatively quiet since with strong buying coming in near the lows from commercial traders. My concern is that the commercial traders will be net sellers of stock index futures this week as they bank some profits and take risk off of the table in advance of next week’s Bundestag ruling on the constitutionality of Germany’s direct participation in the European Financial Stability Facility. Any withdrawal of support from Germany would literally be, catastrophic. Given Germany’s history of political dissent as well as their recent history of economic self-sufficiency this decision could very well be an historic landmark.