ECB holds off to force politicians' hand in crisis

The ECB has held off purchasing sovereign debt bonds in Europe the past two weeks and the results were easily predictable. Yield on 10-Year Italian debt is back over 7%. Italy 10-Year Government Bond Yield

MANY people have been linking to this Spiegel piece, on how the Germans are preparing for the possibility of a Greek default. It's a remarkable read. Consider:The rest of Europe is losing patience with Athens. And after 18 months of crisis in the country, there is still no improvement in sight. Key economic figures are worsening, and there are growing doubts over whether the Greek government truly understands how serious the situation is.

The European Central Bank eased investors' fears about Europe's financial crisis when it said in September that help was at hand for countries struggling with their debts. But the bank, which holds a monthly policy meeting Thursday, isn't likely to take further action anytime soon to help the 17 countries that use the euro with their ailing economies.

The market giveth, and the market taketh away. In the final week of trading for 2010, gold and silver registered powerful “risk on” breakouts. Gold moved definitively to the upside from a short-term triangle pattern, and silver pushed above $30 per ounce.