Europeans screw up again
by Peter Switzer
Wall Street showed no confidence in what the EU leaders can come up with at the upcoming Summit, but it wasn’t helped by the Europeans deciding to cancel a secondary meeting of EU finance ministers!
When it comes to managing market expectations which ultimately will impact on the severity of the expected European recession, you get the idea that these politicians given the task of rescuing Europe — its governments and banks — are A-grade dopes.
They say countries get the governments they deserve and the saga of this failed rescue operation proves it.
The Dow ended down 207 points, or 1.74 per cent, to 11,706.62 while the S&P 500 dropped two per cent to 1229.05, leaving the index still in negative territory for the year.
Reports from Europe still say we will see the outline of the plan from the EU leaders but it would have been better if there were no curve balls thrown just as investors are already very jittery.
Things were not made any better when US consumer confidence came in at the lowest level in about two-and-a-half years.
But in all reality, the US economy is now a sideshow compared to the main event — Europe’s rescue plan — and a Financial Times article suggesting that there won’t be a final plan for the Greek bailout worries me and I’m a whole lot more optimistic than the nervous Nellies and wise guys who determine the direction of the stock market.
I hope I’m wrong, but I’m getting a bad feeling about the Europeans just when we need them to step up.
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Published on: Wednesday, October 26, 2011
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