Updating the Watchlist: European Markets, Bailout Watch

Yesterday, I wrote that we needed to keep a close eye on the European credit markets, and the European markets went to hell, so US equities and commodities followed them. But the dollar rose, creating an absolutely bizarre market singularity as investors ran to treasuries, once again giving the government a free loan. Yes, yes, yes, these are the same people who decry their tax money being used with such impropriety by such scoundrels as the ex-bankers who act as our public officials.

The bailout details still have everyone on edge...at least, anyone who's still paying attention. Henry Paulson has pulled even more ex-Goldman Sachs boys into the fray with him. Conflict of interest could become a major factor in whether this bailout has the effects that we have all placed our faith in it having. Only time will tell, unfortunately, and it does little good to wring our hands in futile angst. These are not elected officials, and with the nation caught between the scylla and charybdis of the election year mudslinging and economic drama, little headway can be made into the tangled web of our activist economy.

Again, there was good news to be gleaned from today. The dollar strengthened against the Euro, proof that in spite of our woes, our economy, due to its relatively well-scaled structure, is significantly more manageable than the 13 country ad hoc alliance that is the European Union. Investors have been buying dollars to hedge against rate cuts in their own countries.

And best of all, my stock pick going into Monday, Huntington Bancshares (HBAN), was at one point miraculously up nearly 15% before settling at a gain of 1.2%. This is especially shocking given the fact that the DOW was down a historic 800 points.