Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

European debt crisis

New CEO at Citigroup; Will Anything Change?

By | October 22, 2012

New CEO at CitigroupThe last two years have obviously been extremely difficult for bank stocks. The financial crisis that took hold of not only America but the rest of the world as well has caused extreme strain across the entire financial sector. However, since the financial crisis several years ago, American banks have substantially shifted their risk and investment strategy and are on a much more solid footing now.

While smart investors used … Read More

We Can’t Ignore It: America’s Going Broke

By | September 7, 2012

We Can’t Ignore It: America’s Going BrokeThe U.S. national debt just surpassed the $16.0-trillion level and is accelerating with each passing minute. The problem is that with the U.S. economy slugging away and an unemployment rate of 8.3%, there are also less tax revenues to collect, which will ultimately impact the government’s balance of tax revenues and spending.

Ironically, while the U.S. is advising the eurozone countries to deal with their own European debt crisis (read … Read More

Get Ready for Some Action in the Second Half

By | July 5, 2012

Stock Market Second HalfWe are at the mid-point of the year, and so far it seems like a rollercoaster ride driven by heightened stock market risk. We had a stellar January, followed by some softness in February and March. April and May, followed by losses, but we saw some oversold buying in June. The key stock indices are still down from the end of the first quarter, and with many unknowns and stock … Read More

How the Eurozone Crisis Will Affect Us Here in the U.S.

By | July 2, 2012

 

Many people have tuned out the European debt crisis and believe simply that another emergency meeting will be held in which nothing will be decided, allowing the eurozone to simply continue surviving as it has.

The problem with this line of thinking is that the unemployment rate and the economic recession continue to worsen in the eurozone, therefore prompting leaders to resolve the European debt crisis and get their … Read More

Consumer Spending Broken

By | July 2, 2012

Consumer Spending BrokenHope springs eternal; many believe consumer spending will resume in 2012 as the jobs market improves, preventing the U.S. economy from entering a recession. But the hard evidence shows otherwise.

As the U.S. Senate and Congress are split between democrats and republicans, there are at least 15 job bills that have not been passed or that are still stalled, as the jobs market continues to deteriorate. (Source: LA Times, … Read More

Europe Had a Glorious Past, but
Its Future Is Full of Potholes

By | June 27, 2012

European debt crisisThe eurozone is on shaky ground.

European Union leaders will be meeting on Thursday to begin an emergency two-day summit as the region’s leaders attempt to localize and corral the European debt crisis.

Spain has formally requested emergency funds to help save its fragile banking system. It is unknown how much cash Spain is asking for, but about USD$130 billion is available. The overriding concern is if Spain collapses, it … Read More

Bank Stocks Under Attack in Both Europe and the U.S.

By | June 25, 2012

credit crisisIt’s not enough we have to deal with the dire economic situation in the eurozone and Europe, but now bank stocks are under attack, especially from Moody’s Investors Service, which is negative on the banking sector. The quality of bank stocks has been improving, but clearly the credit rating agency is a bit on the cautious side and likely making up for not being tough enough with its ratings leading … Read More

Helping Thy Neighbor; Germany Demands Gold

By | June 1, 2012

gold bullionHere’s the bottom line on the crisis in Europe:

The only way the European debt crisis could be put temporarily aside is if the European Central Bank (the “ECB,” our equivalent of the Federal Reserve) prints money. Since Germany is the main voice within the ECB, printing is not the solution, because Germany is refusing outright. This means the European debt crisis continues to escalate on a daily basis.

The … Read More

Spain’s Debt Is Big News, But
Don’t Forget Our Own Backyard

By | June 1, 2012

unemployment rateThe market is focused on the debt situation in Spain, with the country hindered by a national debt of around 712 billion euros or about US$892 billion, which equates to about US$19,391 per citizen. This is why Spain is seriously concerned about the 10-year bond yield at near seven percent. Paying these high financing costs and trying to cut down its national debt and manage its budget will not be … Read More

Why Spain’s in for Some Hurt

By | May 30, 2012

unemployment rateSpain has an unemployment rate of 25%, which is startling given the dire financial condition of the ninth largest economy in the world and the fact it’s in its second recession in three years. Even worse, the youth unemployment rate is a staggering 51%. No jobs translate into less spending. Retail sales in Spain plummeted 9.8% in April, according to the National Statistics Institute. The decline represented 22 straight months … Read More

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