Why the risk aversion today?
- North Korean shelling of South Korean island
- Unclear if Irish parliament can last through the entire budget process that could last into the spring based on recent history
- Merkel says euro in exceptionally serious condition
- France’s Lagarde calls for Irish tax hikes to close deficit (not popular with Irish electorate which is concerned with loss of sovereignty..)
- Rumors Portugal to be downgraded
- Dutch Fin Min–Let private stocks and bondholders in Irish banks “bleed”
