It would be prudent to see how Asian and European markets react on Monday to this news. My guess is also risk on, at least for now. One has to wonder if markets will soon focus their attention much more on Italy and if a firewall will need to be built around Rome later on down the road.

Hopefully the results of the Greek election have been mitigated by the action regarding Spain...

I sold a trading position that wasn't working out. I'm building a huge cash position that's burning a hole in my pocket, but I'm out of ideas at the moment. May add to an EM bond fund that's been holding up fairly well

From a Fuller Money Referenced Article:
"Spain's banking problems are nothing to do with the global spread of its two giant lenders, Santander and BBVA. Nor is it anything to do with investment banking. The Spanish crisis is actually a tale of what happens when power-hungry politicians get their hands on financial institutions.

Spain's problem lies with its regional savings banks - the cajas - that lent money hand over fist to the property developers that fueled Spain's boom. Almost all of these banks were controlled or influenced by one of Spain's local governments. The party in power would own voting shares in its local caja and sit on the board. Nobody in Madrid was paying much attention to how that relationship between local banks and local politics played out."

Article:
Agenda: Spanish banking lessons are lost in
translation

http://www.fullermoney.com/content/2012-06-11/THE_SUNDAY_TIMES_SpanishBankingLessons12May2012.pdf