But Jim Reid, the strategist at Deutsche Bank commented today:
For 2010 we're not surprised we've seen the need to rescue Greece and now Ireland. We're certainly not at all surprised to see concerns over Spain now rising again. What we're probably surprised at is given the extent of the Sovereign problems how well risk assets have performed. Had someone told us in December 2009 that Greece, Ireland, Portugal and Spain CDS would be trading +706bp, +444bp, +411bp and +210bp wider in 2010 at 988bp, 604bp, 502bp, and 323bp respectively as we near the last month of the year then we would have been very impressed that the S&P 500 and Stoxx 600 were +6.6% and +5.0% respectively YTD. For this, authorities deserve credit for containing what we still think have been and are still colossal problems. Can they succeed again next year?