Relentless Downward Spiral
I figure that you all are intelligent people and have realized that my schedule at training doesn’t allow me to write as often as I could at my station. Still, I saw some news this week that gave me pause: that S&P had downgraded the EFSF emergency fund (Reuters). Now, I understand the cold logic behind this, but I also question whether such a move will actually solve any of the problems the Eurozone continues to face.
To Solve This Crisis, Just Take a Deep Breath and Calm Down
Things are evolving so quickly in the Eurozone that I’m sure this will be out of date as soon as I write it. Or maybe not. This is more a general thought about the crisis than a particular focus on one part.
Do We Even Know What They Are Scared Of?
Or, for that matter, do they? ”They” would be investors, who, according to the media, are still running scared from the implications of the unprecedented S&P downgrade and overall economic weakness. At least it’s half right.
Sadly, It Appears I May Be Right
Alternatively titled: Investors are a Superstitious, Cowardly Lot. Skittishness over Spain and Italy, coupled with the U.S. downgrade to AA+ Friday afternoon hit the markets today, leaving the Dow down 5.5% and threatening to make the Eurozone a house of cards.
