I was stopped out of this on European debt worries — the Euro dropped back after the Germans managed to get agreement that investors would take a haircut if a country went into default after the current European resolution regime expires in 2013. I was surprised the market had such a reaction. The EU is not going to become a full fiscal union any time soon, and that means that it will remain possible for weaker members to default — this is not a surprise. But as I say so often, markets don’t get politics.

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