AP Photo: Richard Drew
Although stock futures were up this morning, it seems European banks are following the U.S. down the tubes. The bankers, who fell victim to United States mortgage investments several years ago and lost . . . then invested in what they viewed as “safe” - bonds - issued by countries in Europe’s what looked (at the time) to be “stable” monetary union.
Prime Minster David Cameron on the debt crisis (Video).
The bond investments have turned out to be nothing more than a bandaid - just a temporary fix to a growing and catastrophic problem now impacting Greece and Italy with fears that France may be next in line followed by Spain, likely to miss deficit reduction targets.
Reuters reports: “European banks are planning to dump more of the 300 billion euros they own in Italian government debt, as they seek to pre-empt a worsening of the region’s debt crisis and avoid crippling write downs - a move that could scupper the European Central Bank’s efforts to bring down soaring yields.”
Essentially, Europe is going through the fallout from investing in the United States. Banks could face billions of dollars of losses on loans to nations that use the euro. (Timeline of articles)
Telegraph Photo
When did loading up on even more debt become a safe haven? The long-term impact will be felt worldwide and may affect world confidence in the United States as a leader and a nation whose decisons can no longer be trusted.
Here’s something positive - Gold - gold . . . still considered a good investment and rising. Gold exceed $1800 an ounce on November 8.
Yes, I believe in the Tooth Fairy, Santa Claus, in love that lasts forever and that some day world markets will turn around, hopefully in my lifetime.
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CNN Money
CNBC’s Mad Money’s Jim Cramer: An in-depth look at European markets
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