Radio Rallies & Reversals

Since Ireland seems to be driving the markets of late, I thought I'd share a few comments from Credit Suisse about Ireland:

The total cost of a worst-case write-off for Ireland, Greece, and Portugal is 170 billion Euros, compared to the amount of money available - 670 billion Euros;

Core Europe cannot afford to turn its back on peripheral Europe; the cost of doing so would be at least $500 billion. Core Europe has at least $900 billion of banking assets in peripheral Europe;

The situation in Spain is sustainable for now. This is critical because there is nearly 460 billion Euros of core European bank assets in Spain, and Spain accounts for 11.5% of European GDP (70% larger than Portugal, Ireland, and Greece combined).

There's not much economic news this week, but watch for the second estimate of US GDP tomorrow, along with existing home sales and Canadian retail sales. On Tuesday we have durable goods orders in the US, new home sales and the FOMC minutes from November 2nd and 3rd.

Just a reminder that US markets will be closed all day Thursday and Friday due to their Thanksgiving holiday.

GB