Spain, Spain and Spain this morning. New highs in 5 years CDS, new high in social tension and 6.45% in 10 year Spain. I will file bigger macro report this morning, but this is clearly becoming summer of discontent and the real issue is: There are NO planned meeting where policy makers can promise solutions and there are no new measures possible. The Germans have to wait for September 4th to get ESM in place, so using EFSF is very risky considering the relative small amount available, and soon we will have a new government in Italy.

Someone at Forbes pick-up on our old theme of a need for a bank holiday yesterday:

http://www.forbes.com/sites/nathanlewis/2012/07/22/message-to-europe-its-time-for-your-bank-holiday/

More later, but this is the time to be short Europe or neutral. Summer of discontent is here