Check out today’s action in European sovereign credit and bank equities after the the better than expected results from the Greek election. Spain and Italy blowing out and Euro bank stocks clearly demonstrates the market is beyond Greece and looking for structural reform and a long-term fix.
More concerning is that the market may giving up on EU policymakers. Though economic solutions to the Eurozone crisis do exist, a German is still a German, the French are still French, and a Greek is still a Greek. We believe national sovereignty is the underlying issue now driving the crisis and how much of it each country is willing to surrender in order to end the crisis. The Greeks have voted and the markets are still voting.
(click here if charts are not observable)