Is Talk Of Euro Abandonment Good For The Soul?

Splintering and dissent continues in a major way as Christian Noyer, head of the Bank of France, attacks the fiscal rating of the UK following a negative outlook review of France by the rating agencies. In Portugal, socialists talk openly of default as a weapon. Portuguese Socialists Threaten "Economic Atomic Bomb"

By Market Blog: By David Berman FT Alphaville points to an interesting take from Nomura analysts on why falling U.S. corporate profit margins may not be bad at all for either the economy or the stock market.

FT Alphaville editor Paul Murphy just published a scathing review of Dutch Finance Minister Jeroen Dijsselbloem's first major crisis as President of the Eurogroup of euro zone finance ministers, a job he began in January. Murphy's conclusion, in short: Fire Dijsselbloem.

While fourth quarter 2012 earnings results will again garner attention this week, investors may also be looking overseas to gauge market direction, since this week holds the first meeting of the year for European finance ministers. It is worth remembering that each spring for the past three years, the S&P 500 has started a slide of about 10% during the second quarter, led by events in Europe.

APG will invest £160 million in rental housing in London. Oil prices fell influenced by uncertain discussions over the debt ceiling. Financial ministers meet in Davos for the World Economic Forum. Apple’s shares in a 11-month low.   

AFTER musing on the new euro-zone plan for an evening, two principal thoughts stand out. First, the deal clearly makes for good firefighting. Yields on peripheral debt are cratering this morning, and it isn't too difficult to understand why. A few days ago, I wrote:

ETF Database submits: In recent weeks, the future of the euro has been a hot topic among investors, as the current “stress testing” of the common currency system has uncovered some worrisome flaws. The euro has slumped against many of its major rivals as fears about escalating budget crises in Greece, Spain, and Italy have caused investor anxiety. But for all the focus on the euro’s struggles, most investors do not realize so far in 2010 British pound ETFs have lost more ground than euro ETFs.

Talk of Euro abandonment would trigger an immediate run on Greek banks, sending the country into an even deeper hole.  Who wants a Euro deposit to be converted into a drachma deposit?