Why do you think stock prices continued to rally in the US and in Europe yesterday after the ECB passed on lowering its official rate?
Does anyone think a temporary exit from the eurozone by Greece would relieve pressure in the eurozone, and also help adjust the trade imbalance and restore growth in Greece?
Re: More Happy Cheer
yalanand
6/4/2012 10:41:28 AM
The next domino will be more of a shock. Spain, maybe? Spain is not so small...
@PredictableChaos, true. Everyone is worried about the domino effect. It started with Greece, spread to Spain and everyone is worried about where it will spread next ? And the worst part is they cant ask Greece to exit euro because that will create even more bigger problems.
Re: More Happy Cheer
yalanand
6/4/2012 10:35:11 AM
I think it was Scott who compared it to a drug -- and now we are addicted.
@Noreen, true. Sadly we are addicted to it. I am just worried what will be the side-effects of this.
...and they're saying that Greece will be out of the Eurozone within a month, which however long anticipated, will still be a shock.
Greece is just 2% or 3% of the EU. Everyone has had a lot of time to think about Greece and it's not a big domino. I think it's mostly priced-in at this point.
The next domino will be more of a shock. Spain, maybe? Spain is not so small...
Re: More Happy Cheer
Dex
6/4/2012 8:47:37 AM
I agree, Noreen. I see the stimulus as a never ending ploy to keep things propped up.
Yalanand, Is there any end in site to government stimulus? No. I think it was Scott who compared it to a drug -- and now we are addicted.
If you want to feel worse about the whole situation, watch the morning news. Is it possible to see more people blaming each other -- and no one talking about potential solutions?
@yalaland
It's everything. Economic data from around the world has been on the decline for three months including data form the US, China, and Europe. And the fact that the Europe situation appears to be escalating worries investors that it's not about to get better.
Here is a good index that tracks economic numbers in real time:
http://www.bloomberg.com/quote/CESIG10:IND
Re: just wonderful
yalanand
6/3/2012 9:38:40 AM
Look at it this way -- at least the job number wasn't negative!
@Scott, what is weighing more on US markets ? Is it bad US economic data or is it negativity surrounding eurozone ? And do you think euro will retest its 2008 lows i.e sub 1.200 levels against USD ?
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