Plus, we are going to get some big IPOs now from Santander, first in Mexico, where it is a dominant player, and perhaps soon in the United States.
We know that Spanish banks are in big trouble, but there could be a solution here, an offload of some bad loans from Santander and Banco Bilbao Vizcaya Argentaria, the other big bank that also has foreign stakes, and then a shotgun merger of all the failed banks into these two.
We know that Angela Merkel, the iron chancellor, is reiterating her support for the grand plan to save Europe from debt. But I believe it's this master plan for the Spanish banks that was driving yesterday's return. You get European Union money, and you can build "bad banks" and create two strong ones to take care of the rest of the problem.
I'm steamed about the lack of reporting and writing about this Spanish move, because if we had a 4 percent decline in Spain, we would be talking and writing and hearing about it. This whole rally would be crumbling. The big move up in the international stocks would be getting rolled back as you read this.I know, good news doesn't sell papers. But accurate news does, and we should be focusing on every nook and cranny about what's happening in Spain and, yes, Italy.
These two countries were supposed to be going out of business. Now they have the hottest stock markets in the world. Italy, in its own currency, will be in the black tomorrow at this pace.
Sure, we have a terrific tape, just a few points from its four-year high. Yes, we have some good corporate profits. But we don't have anything really terrific happening in employment or in the Fed numbers. What's happening is that we are seeing the bottom in Europe, and that's allowing all other markets to shine, except the U.S. bond market, which is at last becoming an unneeded safe haven.
Watch SAN. Watch BBVA. They are giving you the true story of what is happening right now. Their rally is our rally. Their moves are ours. Except that they happen first, which makes them far more indicative of what's about to happen.
Disclosures: Cramer has no positions in any of the stocks mentioned.
