Thoughts From Joe - July 13, 2012July 13, 2012 Posted by: Joe Morgan
Forty-one percent of respondents are "seriously concerned" about social unrest and fifty-four percent believe it is "almost futile" to try to save the euro. Though an unscientific poll, given the other sixteen euro countries seem to be looking to Germany, the results are certainly understandable.
The deadline for Spain to improve its deficit was extended by one year to 2014 after a deal was struck to provide €100 billion to the country's banks. "Kick of the can" number 4,312.In other news, Moody's downgraded Italy by two notches to Baa2.
Much more than in the U.S., Europeans believe money is safest when kept in the bank - even today. This perception may change if bonds sold through bank branches to retail investors experience losses as may be the case in the Spanish bailout. A strategy of diversifying exposures has not been popular in Europe due to the perception that bank deposits are 100 percent safe. Should this perception shift, it will be non-reversible, forever changing the financial system in Europe…for the better!
Stockton, Mammoth Lakes, and now San Bernadino have opted for Chapter 9 filings. Much of the stress from the recession...Read More