The past week’s continued rally was mostly on rising hopes for progress on the EU crisis. No one believes the big ultimate solution is coming soon. That would require two huge commitments we don’t think the EU is ready to do: Place national budgets under centralized EU control in order to avoid a repeat crisis. That means ceding a huge chunk of national sovereignty. How much control does a nation have if foreigners can determine its budget? More bailouts from funding nations, probably more austerity or asset sales from debtor nations. The current rally is based on a belief that the EU may defer the day of reckoning ... (full story)