European Economy

The numbers coming out of the eurozone continue to point to a monumental new recession…something I’m very concerned will make its way over to America.  Eurozone unemployment has hit its highest level since the euro was introduced (1999). Among the 17 countries that make up the eurozone, December…

After 36 years, France has lost its coveted AAA credit rating. S&P downgraded France’s AAA credit rating one notch to AA+ late Friday, and the bad news didn’t stop in France. S&P maintained its outlook as negative for the country, which means that there is a one in…

In spite of the eurozone mess, U.S. markets appeared to have forgotten about the severity of the chaos in Europe, instead focusing on a good jobs report and domestic renewal. January began with a bang, with the NASDAQ up close to five percent before some selling surfaced last…

It’s payback time… In 2008, the now infamous bust of the U.S. housing market placed extreme pressure on U.S. banks and it created a credit crisis in America. A homegrown U.S. recession was then quickly exported to Europe. Now it’s Europe’s turn to return the favor. The debt…

Back in 1473, more than 500 years ago, a bank was born in Bologna, Italy. Through the centuries, the bank grew and grew its base. It would eventually absorb the nine largest banks in Italy and “combine” its assets with a large German bank. Today, the “little” bank…

U.S. investors are starting the year 2012 with a nice positive push in equities, but caution is warranted due to the turmoil that continues in the eurozone. It appears we’re beginning to see the cracks growing larger in the euro and companies are being hit hard on that…

This has been a dismal year for the euro. The credit crisis continues unabated for the eurozone. Policies are talked about constantly without any real action provided. It seems as if there is no hope for the euro. This is best summarized when looking at the Commitments of…

There is no doubt. Concern over the eurozone is stagnating growth in the Europe. It was reported this morning that the unemployment rate in the United Kingdom is at a 17-year high (Source: London-based Office for National Statistics). Thomas Cook, the world’s oldest travel firm and the eurozone’s…

Don’t be fooled by the recent upswing in the markets. It’s true that the economic situation continues to improve across America, but there is still the $15.0 trillion in U.S. debt along with a mounting deficit, not only in the country, but across many states. And, as we…

As 2011 rolls to a close, we have seen some violent moves in stocks, commodities, interest rates and currencies. It seems as if the bottom is in; the future is bright, as Europe is about to end all of their problems this Friday. However, I wouldn’t move so…

Stocks surged over four percent on Wednesday after some of the world’s central banks decided to link forces and make sure the European debt risk doesn’t worsen. China will also cut the bank reserve requirement to drive more lending and spending. But don’t be fooled, I’m not convinced…

When things seem like they can’t get worse, they usually do for this global recession. This past week was a scary sign of things to come for all European debt. Germany, the anchor of the eurozone as the strongest economy, tried to sell some bonds and failed to…

Here’s what investors know so far about the eurozone crisis: Ireland, Portugal and Greece have all asked for a bailout. Spain and Italy are next. The governments of both Greece and Italy have toppled. However, the wild card that most investors fail to recognize is the second largest…

It’s a crazy trading environment out there. Whether you are in bank stocks, gold stocks, silver stocks, or even cyclical stocks, the stock market risk is high at this time, as we just completed a volatile week of trading. The European debt crisis is keeping buyers on the…

The big news yesterday: Fitch Ratings service comes out and issues a warning for U.S. banks. Fitch may lower its credit ratings of the large U.S. banks if the eurozone debt crisis is not resolved. U.S. bank stocks got hit hard on the news. Bank of America Corporation…

The sovereign debt issue in Europe is a direct threat to the U.S. stock market. It’s been like this for the last year, and it is likely to stay like this well into 2012. Prior to the European sovereign debt crisis, U.S. equity investors didn’t really care about…

The world’s debt crises (that’s plural!) have being going on for years now and it will be several more years before Europe gets a handle on its situation. The U.S. debt crisis was mostly about subprime housing mortgages, while Europe’s debt crisis (mostly Greece at this time) is…