The intensification of the European debt crisis continues to overwhelm all other considerations in the global capital markets. The corrective bounce we anticipated on May 17 largely fell shy of the technical objectives as the European officials appeared to continue to drift toward a Greek exit. In addition, the flash PMI readings from the euro zone and the German IFO warned that the regional economy cannot count on German locomotive here in the second quarter. Regardless of the particular policy response by officials, stronger growth in the core (fueled by domestic demand) and a weaker euro would provide a more ... (full story)