In a recent TV interview, I was asked about the new Governments in Greece in Italy and whether this meant that the worse was and we could expect a Santa rally.   I was skeptical because if major indices fluctuate +/- 2% every other day - it reflects a high degree of uncertainty.  I was also skeptical because even if Governments change - they still need to ratify the measures requested by the ECB for them to tap the rescue funds.   The volatility continues and while the appointments of new Prime Ministers in Greece and Italy did cause the VIX (fear) index to briefly fall below 30 (the so called safe region), it didnt stay there for very long. Chart 1: Vix Index......