At 8:10 a.m. futures are modestly down, the dollar is unchanged to higher against major world currencies, and the price of oil is down. The market is poised to open mostly lower.
I was wondering how this Greek vote which threw power into a potential pro-austerity government would directly affect the market this morning. There you have it, it did not affect anything. Investors are pleased of course because austerity usually means privatization, the transfer of publicly held wealth into the hands of corporate powers, and all the "good" things that the investment world loves to see. Incidentally, we will be seeing far more of that right here in the USA when Mitt takes over in January, just as it occurred when George The Second stole his way into power.
Unfortunately we are seeing lots of dire warnings about the world economy. Even though Greece has somehow or other voted against its own interest and allowed in a pro-austerity party, Spain and Italy are crumbling economically and that is tanking the market today and probably for some time to come. The warnings however are troublesome. They range from a 90% drop in equity value along with a 100% rise in inflation (incidentally that type of warning comes from the severe right) to another recession and very slow growth. What are we to do? You tell me.
CNN: U.S. stocks face uncertain start
...the Greek vote did little to assure investors about mounting problems in Spain and the Spanish banking system.
"...the rates going through the roof again in Spain and Italy are overshadowing the news out of Greece..."
...the meeting of the Federal Reserve concludes Wednesday.
...world leaders meet in Mexico on Monday for the Group of 20 summit.
2 comments:
The whole austerity racket works like this. It's called changing the subject. Someone starts an argument about the size of a fish they caught and the other person says what's really important and will make the fish smaller is the size of a giraffe they once thought they saw. It's irrational. Or, a tleast it seems it is. Actually its just more shock and awe. You crash the economy and then having basically stolen 30 yrs. of everyone's wealth you blame the people you just robbed for being greedy and stupid. You can do this because you own all the MSM and the economy and the political system and the people own your debt and they also own the blame for all of this. We saw this play out immediately after the collapse. The right blamed Freddie and Fanny Mac both supposedly D party Institutions and then the tea party blamed Gov't workers and now we have Austerity to solve the problem, by cutting everyone's SSI and all other Social net programs. Essentially what we have as a cure is the radical rights project now on steroids. The result will be a very long and ugly Depression. Plus, for all practical purposes the death of the D party for now. Oh, but that's the desired out come as far as the right is concerned.
Well I think you've go the main points and thanks for taking the time to write it out.
All I can say is I'm not looking forward to 8 years with Mitt.
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