Tuesday, May 8, 2012

Markets Crashing - Again?


The Dow:  500 Point loss in only a few days


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The Dow is plunging again today; looks like it's lost about 500 points in the last few days, which indicates bad stuff is happening.

17 Banks -- in the toilet   (c) Newsmaker Today



"Moody’s Investors Service is reviewing the creditworthiness of 17 banks and securities firms with global capital-market operations. It may cut ratings on Morgan Stanley, Credit Suisse Group AG and UBS AG by as many as three levels."




Sarkozy welcomes his Socialist successor
Now, all that bad news was processed before France ousted President Sarkozy and voted in a Socialist President -- who promised the French he would give them lots of money and more freebies; and, before Greece ousted their pro-austerity government.

And, the deep thinkers announced this morning -- before the   markets opened -- that everything was hunky-dory.

[Keep moving, nothing to see here, keep moving]




The reality is that Europe is about to play serious politics with the Euro.

A solid work ethic, quality merchandise, a balanced budget
(c) Christian Science Monitorbudget.

They're all blaming Germany because it instituted all the austerity reforms, made the sacrifices necessary, and it now has full employment, a balanced budget, and a stable banking system -- vs the rest of Europe which is still feeding from the welfare trough.

But, but, those nasty Germans!
They should SHARE their wealth!


   


It only works until you run out of other people's money
(c) Marty Nemko

Spain, Portugal, and Greece are all crying the blues because they can no longer retire at full pay when they're 40, or get free health care, or take two years off from work coincident with a pregnancy.

This is a terrible situation.  One report included an interview with a gentleman who complained that he could no longer afford wine with his lunch.  What an incredible sacrifice!

 


Great idea;
really poor implementation
The European leadership is demanding that Germany step up to the plate and provide more low interests loans [no matter that the last series of loans was not repaid], and to support the rest of the European Economic Community; after all, the Germans now have plenty of money, industrial growth, lots of exports, solvent banks, and so, they should share their wealth!
 
And the EC is right there, ready and willing to spend Germany's wealth, since they have all burned through their own savings and credit limits to accommodate their Socialist programs.



 


Something we can look forward to here in the US should we be silly enough to allow Obama to be reelected.