As the European markets are up a minimum of 3% today based on rumors that the IMF is preparing to bail out the European Union, Moody’s has just issued a warning concerning the EU’s continued debt crisis. Also at this time, the IMF is denying any measures for a bailout and gold is up $35/oz.
With the announcement that Europe is entering a recession, the increasing number of new governments and no real solutions, I have to ask: who is buying stock in Europe? And who is buying stock in the United States besides the New York Federal Reserve through POMO?
The United States has the same issues:
- We never came out of recession if the stimulus factor is removed.
- We have no real solutions to our debt.
- Who is buying stock?
- Unemployment is over 16%.
- The debt ceiling will be reached again within 2 weeks and the president is authorized to extend it by executive order.
One factor that we do not have at this point is a new government. Unless you consider the impotence of Congress and the Supreme Court to stop the Executive Branch from forming a dictatorship by bankrupting the country.
David DeGerolamo
Moody’s warns on eurozone debt
The rapidly escalating crisis in the eurozone is threatening the standing of all the region’s governments as their ability to raise capital in the markets is increasingly questioned, Moody’s, the US rating agency, warned on Monday.
The agency fears that policymakers will not be able to move swiftly enough to stem the deepening crisis, particularly in a week with a series of important bond auctions that will test investor sentiment and put the European Central Bank under greater pressure to intervene further.
It adds that the probability of sovereign defaults is “no longer negligible” and a series of defaults would significantly increase the likelihood of countries leaving the eurozone.
While Moody’s central scenario remains that the single currency bloc will be preserved without widespread defaults, the agency warned that any country requiring support for a sustained period was likely to be downgraded to speculative, or “junk” status.
tick tick tick…
9 days and counting… then boom, boom, boom, out go the lights.
Hope you have your supply room stocked and are *fully prepared*, because the winds of change are about to blow. And shortly after Europe enters the whirlwind, the storm shall reach our shores…