Skip to comments.Risk assets weaken after French, Greek elections
Posted on 05/06/2012 5:10:44 PM PDT by Oldeconomybuyer
(Reuters) - Risk assets fell broadly on Monday after elections in Greece and France fuelled questions about whether struggling euro zone economies will continue to pursue austerity measures which are seen by markets as crucial to resolving the bloc's debt crisis.
U.S. stock futures were down 1.1 percent, indicating a big drop for MSCI's broadest index of Asia-Pacific shares. Japan's Nikkei stock average is expected to open sharply lower on Monday.
"Austerity will not work to solve Europe's debt crisis. However shifting austerity to higher earners and business will accelerate the debt crisis," said Jeff Sica, president of SICA Wealth Management, which manages over $1 billion in client assets, real estate and private equity holdings.
Socialist Francois Hollande swept to victory in France's presidential election, ousting incumbent Nicolas Sarkozy who had played a key role in structuring bailout schemes for indebted euro zone members and pushed for strict fiscal policies aimed at managing huge debts, in close cooperation with German Chancellor Angela Merkel.
(Excerpt) Read more at reuters.com ...
this is not good
The Nanny Staters are now the biggest voting block.
“The Nanny Staters are now the biggest voting block.”
The world population is not ready to let go of their freebies.
In history, groups of people don’t let go of their free stuff unless it gets to the point where there is no more money to give away.
Europe will totally collapse
“In history, groups of people dont let go of their free stuff unless it gets to the point where there is no more money to give away.”
And that’s when the bloodshed begins.
If gold and silver are “risk assets”, and I believe they are, they aren’t getting the hint. Silver is down maybe 30c at the moment; 1% moves in silver from one day to the next are the rule not the exception. Gold is down three bucks, which is about what it can move in any given minute any day of the week.
Then a war will. More debt does not equal prosperity.
This is the stuff world wars are made of.
There could be a bright side to this. Maybe they’ll boot all the dirty muzzies...