Europe out of time, Wall of Money needed
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Once again the weekend is over without any significant development from the Troika. Next week a new round of discussion about new austerity plan is planned but is Europe running out of time? YES !

In my opinion the market damage is now far greater than what politicians expected. This was caused by a total lack of leadership in the Eurozone.
It is clear from the drop in the commodity indices signals that the market is now preparing for the worse: a Greek default & slow global growth.
A Greek default has to be avoided at all costs. Unfortunately there is only one player that could help the widespread contagion: the European Central Bank. What markets sentiment needs now is not a simple firewall but a Wall of Money! (represented by prompt extraordinary measures).
The ECBE is the only institution that can act independently and without the parliamentary ratification of new measures. I don't see how the EFSF could become operational soon enough to calm the markets.

European Growth in serious danger
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I fail to understand how in a low growth environment austerity measures alone will stimulate the economy. In this regard I see the U.S. policy more appropriate to deal with low growth than the European austerity that, in my opinion, will not produce great results.

Commodities and Gold: what is safe?
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The current Gold correction was mostly due to margin calls and the cash needs from several investors. Additionally Gold is obviously reacting to a stronger dollar as it did in 2008. I still think that Gold, over the long term, will continue to be a good hedge in a portfolio. I see the further corrections in Gold as a buying opportunities as in the current climate there is no better currency.
This is not applicable to Platinum and other precious metals linked to an industrial usage.

Strategy: Buy Armageddon-proof multinationals
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I still think that a Greek default will be avoided. Starting from this assumption many European companies are now at very attractive valuations and represent a good buying opportunity. I favor consumer staples and armageddon-proof multinationals.

Obviously this is applicable only to mid-long term minded investors that should also maintain an allocation to Gold.