It ain’t easy to skin a griz

It ain’t easy to skin a griz

Bear Claw Chris Lapp: Can you skin Griz?
Jeremiah Johnson: I can skin’ em as fast as you can catch’ em.
[Bear Claw runs through the cabin with a huge grizzly bear close behind and jumps out the back window]
Bear Claw Chris Lapp: Skin that one, pilgrim, and I’ll get you another!  — Jeremiah Johnson 1972

A few years ago I wrote a series for the Financial Times called “All the best things in life come from Italy”. I talked about how the best leathers, the best fashion, the fastest cars — all come from Italy. Italian food’s pretty famous for a reason. And even coffee had to go to Italy to become an espresso, a latte and a cappuccino. I mean, we use Folger’s and creamer in America and deli coffee with milk is fancy for us, right?

Anyway, it’s all about Italy this morning as the headlines show:

EUROPE IN CRISIS | Italian bond yields on the brink
Berlusconi to resign

Italy’s prime minister vows to resign after budget bill is approved.
Berlusconi to stand down after turbulent reign
Slide show: The ever-colorful Silvio, over the years
Italy’s unlucky number: 7% (The Tell)
Shares of Berlusconi’s Mediaset drop on results, politics
Greek negotiations over next prime minister drag on

You guys know that I’ve been getting ever more cautious over the debt in EU as the markets have become ever more jubilant about the debt in EU. Italy’s never going to be able to pay back all the money they’ve borrowed at incredibly low historical rates, just like Greece couldn’t, just like Ireland couldn’t, and just like Iceland couldn’t. The austerity packages will shrink their economy and further exacerbate their developing borrowing crisis.  But the banks will live to plunder for another couple years, so that’s a good thing, right?  Right?

Anyway, I’m letting things ride here for now. Our puts are trying to kick in and we’ve got a lot of cash on the sidelines so we can swing at the pitches if and when we choose to. Today’s pullback feels, looks and charts like the path of least resistance remains lower for now.

This bear won’t be any easier to skin than the on Jeremiah Johnson had to:

Jeremiah Johnson meets Bear Claw Chris Lapp who teaches him a thing or two about skinning “Grizz”.