Posted on 09/12/2011 5:46:00 AM PDT by markomalley
Global stock markets took another battering today amid mounting concerns that Greece will default on its debts and others in the eurozone might follow.
Asian shares slumped overnight, while the FTSE 100 Index in London tumbled by more than 2 per cent at one stage as investors also digested the impact of a tougher-than-expected report on banking reform.
European markets saw heavy falls, with the CAC 40 in Paris down by more than 4 per cent and the Dax in Frankfurt 3 per cent lower.
Ben Potter, market strategist at IG Index, said: 'The selling seen over the last few days is the market trying to tell us that all is not well and there's a serious risk of this crisis descending into chaos.'
The mood soured on Friday following the resignation of Germany's top representative from the European Central Bank (ECB).
(Excerpt) Read more at dailymail.co.uk ...
I have to say that the theory that the markets are the synthesis of a bunch of knowledge has taken a real body blow over the past several years. It is obvious that more loans to Greece won’t work. They can’t stop spending. Any time they try they get riots. The type of radical spending cut they need will result in civil war. Yet the markets somehow thought that a new loan package would get Greece back off the cliff. Amazing that people who are billed as so smart can be so stupid.
et the markets somehow thought that a new loan package would get Greece back off the cliff.
The US Senate, last Thursday paved the way for an additional one-half Trillion in increased spending. Because of the "Super Committee" the House's vote can't stop it. I submit that this new found money is going to Greece.
That's the second heavyweight German banker to, ahem, bail out after Axel Weber from the Bundesbank. Two top bankers not going along with a mega-scam. Imagine that.
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