Merkel loss may cause her to reconsider "austerity." However, the more important news tonight is the latest Mauldin letter. www.businessinsider.com/mauldin-germany-has-waved-the-white-flag-and-will-allow-printing-and-inflation-2012-5
Based upon a comment made by a senior Bundesbank official, Mauldin notes that the Bundesbank may now be willing to let the ECB print money. If this is true, we may get the first hint of the new "growth" strategy when Merkel meets with Hollande on Tuesday. Needless to say, if the two of them indicate that the ECB is going to be allowed to print, this would galvanize the US market on Tuesday.
IMO the ECB will be forced to print Euros no matter what Merkel does. That's the only way out for Europe. The question for us is whether Bernancke will be forced to print USDs to keep the Euro/USD around 1.30 if the ECB prints trillions of Euros. If not, then commodity stocks, including the ferts, will not be the place to be for the next couple of years. If so, or if Bernancke decides to weaken the USD by intervening in the currency markets, then commodity stocks will go higher, along with everything else. Hard to tell what will happen.
I appreciate your constructive criticism of my posts, even though I don't always agree with your comments. GLTU! Savannah