The UK election just got a lot more interesting in a big negative way for the British pound.
What the European leaders really meant to do with their big-bang, trillion-dollar sovereign-debt rescue was to save the euro currency, not to bury it. But with the cave in by European Central Bank head Jean-Claude Trichet (formerly a hard-money man and closet gold watcher) to use the "nuclear option" to buy up dubious sovereign debt, the euro is likely to keep depreciating.
If the support package put smiles back on the faces of the politicians, it did little to lift the mood of the business people gathered at the WEF meeting in Brussels.
The unprecedented action by European politicians and bankers has led to a massive sigh of relief from investors, because the ECB is promising to buy European government debt—in the open market—for the first time ever.
Recall that many global markets and several sectors hit highs in April - before accumulating losses through Friday's trading.
Europe's $1 trillion bailout fund might alleviate some of concerns that its debt problems could spread to the US, Philadelphia Fed President Charles Plosser told CNBC Monday
Twenty-seven European nations and the IMF agreed to a mammoth E750 billion plan to stabilize the financial markets.
The expected surge in share prices this morning is accompanied by sighs of relief and breathless anticipation of new highs. THIS IS NOT RESILIENCE! This is the effect of a trillion dollar injection. It represents new debt and commitments to support governments that have not lived within their means.
By establishing a 750 billion euro fund to bailout Greece and aid other struggling governments, Germany and other strong European states are chasing a dream—a single European currency and broader European unity—that may have no place in reality.
The European emergency rescue package is impressive in scale, but fails to address three key questions, Simon Derrick, chief currency strategist at Bank of New York Mellon, told CNBC Monday.
The International Monetary Fund and, crucially, the European Central Bank on Sunday unveiled a €720 billion ($936 Billion) emergency rescue package to help stabilize markets and prevent the break-up of the euro.
The EU's 500 billion-euro crisis fund will provide 'immediate relief'; however, austerity measures attached to the bailout will harm the growth prospects of the Eurozone, said Beat Lenherr, chief global strategist at LGT Capital Management.
It was pretty wild out there. But instead of chalking this up as simply panic in the market, we should see it as a huge wake up call. All is not well.
As the market dropped our team was watching. A car wreck is a much too pleasant analogy. I was at my desk in 1987, 1989, 9/11, 2008, and I’ve never witnessed what I witnessed yesterday.
For the market to plunge 1000 or so points and then rebound a good bit of the way back is rattling.
Despite Thursday's unexplained surge in selling that drove the Dow down 900 points, the stock markets are being driven lower by fears over the global economy and the debt crisis spreading, economist Nouriel Roubini, of RGE Monitor, told CNBC Friday.
The suspected erroneous trades that exacerbated the Wall Street's fall on Thursday should be investigated and solutions must be found if the New York Stock exchange is to maintain its reputation, investor Jim Rogers told CNBC late Thursday.
'Eurocrats' can't see the fanciful construction of the euro is going to collapse, just like the 1930s gold bloc, says this economist.
Panic has gripped stock markets worldwide over the Greek debt crisis and the threat of a debt-deflation contagion through banks in Europe (primarily) and the U.S. that own the bonds of Greece, Portugal, Spain, and so forth. If these bond asset prices collapse totally, lending facilities would be badly crimped for both the short and long term.