Portugal's Prime Minster has resigned as the latest proposed austerity measures went down in defeat amid a mass of strikes.
We'll see what happens in regards to Europe, but here are a few points to keep in mind:
* Most of Europe still has large scale, viable manufacturing that provides employment to tens of millions.
* Unemployment in Western Europe is not much higher than it has been for decades.
* The Euro is worth more than a dollar.
* There is still some room to cut in European interest rates.
* Europeans are not conducting multiple, open-ended, large scale and expensive interventions in two Asian countries.
Contrast these facts with the nation across the Atlantic, whose only advantage stems from the fact that it still holds the world's reserve currency. One disadvantage - this nation is utterly dependant on oil, not just for electric but for basic transportation and worst of all, commuting. The average person lives 20 miles or more from their place of employment, and in most communities there is no alternative, or an alternative that could never handle the crush (nor does it run on the most needed routes). Finally, it's unemployment is well into the double digits in reality (factoring in Part Timers who want Full Time Jobs, and those who have exhausted unemployment and are living on the dole or with family).
Disclosure: Waiting a buying opportunity on Europe. No domestic US holdings.