worse...the debt  problems seem to be getting much bigger and the solutions seem to be getting much harder to find. A dramatic turn for the worse would have a contagion effect on global markets...which would inspire central bankers to take dramatic action...have no doubt, when push comes to shove, central bankers will fight deflation with stimulus. A Real Crisis Could Produce a Real Solution: Perhaps a really dramatic crisis will force the politically unpalatable action necessary for a lasting solution to the European debt crisis...such a solution would certainly include default/bankruptcy in some form...either a debt write-off or a dilution of liabilities through the adoption of a new currency. Until Friday, the major European and North American stock markets had made good gains for the week...they appeared oblivious to the European credit market stresses, and to the growing evidence of a global economic slow down. Perhaps the markets sensed more central bank stimulus was coming soon, although Fed Chairman Bernanke seemed to rule that out during his Congressional presentations...or perhaps the stock markets were benefiting from capital flows seeking safety....however they turned sharply lower Friday as the Spanish debt crisis intensified. Despite the European stresses and the evidence of a global economic slowdown, the DJI has rallied nearly 1,000 pts from its June 4 lows to this week's highs...the British, German and French stock markets have also made good gains while the AUD has rallied over 8 cents, and the CAD is up 3.5 cents. However, if the stock markets