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Things are evolving so quickly in the Eurozone that I’m sure this will be out of date as soon as I write it.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.
