Initially the Eurozone debt deal was seen as good from the investor point of view, a few days later questions are arising in the investment mind about its actual effect and size - not enough and not enough. It is conceivable that the Eurozone deal falls back to square one at which point volatility returns to the market.
Balancing on the other end of the Eurozone tether are stronger than expected third quarter results and an American economy that grew at a surprising 2.5% rate also in the third quarter.
In addition here are a few more bumps coming up:
- Europe is possibly already in a new technical recession
- The American consumer is heavily in debt and is purchasing using savings. Therefor the money that bought that 2.5% GDP will not be there in the future.
- Unemployment remains high and probably can't improve until the above point improves and there we have a negative feedback loop occurring - high unemployment, no money, no spending, no need for companies to hire to produce more for you oh ingrate consumer. And around and around it goes.
Personally I am not at all confident about this new market rise. The big deal people in the .0001% are making money hand over fist in a volatile market regardless of if it is sinking or rising. This is who drives this whole mess down the apocalyptic road anywho. Hang on the bumpiness is still coming.
Reuters: Long list of dangers ahead for global economy
"If the absolute amount is not enough (Eurozone debt deal), we will be back to the storms. The break in the clouds may only last a few hours..."
Europe probably is already in recession...
As long as the American consumer, who drives 70 percent of all U.S. economic activity, is buried under a mountain of debt -- much of it mortgage debt -- and many houses remain worth less than the mortgage, consumer demand will remain weak and business hiring paltry.
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