Bulls On Parade As European Debt Markets Quietly Become Unhinged

Sept. 29 (Bloomberg) -- The cost of insuring against default on Portuguese government debt surged to a record on concern the nation will struggle to reduce its budget deficit.

Sept. 29 (Bloomberg) -- Yields on Ireland’s 10-year bonds rose to a record 454 basis points above benchmark German bunds today on concern the nation’s banks may need additional funding.

Sept. 29 (Bloomberg) -- Italy’s borrowing costs rose at the sale of 7.9 billion euros ($10.7 billion) of bonds today as concerns about the ability of so-called euro-peripheral nations to cut their deficits prompted investors to demand higher returns to hold their debt.

Meanwhile Gordon Charlop on CNBC this morning sees Dow 12,000 by the end of 2010, the Aussie dollar powers along while the USD gets steamrolled, gold and silver are prancing at highs. We are headed for a wild crescendo, I believe. It will not be a buy signal.