DJIA is tumbling Wednesday due to new unrest in European financial markets. Fear over the insolvency of banks in Italy and France, as well as a sovereign credit downgrade of somehow still AAA France have EU markets in chaos.
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Updated on Aug 10, 2011 at 11:18 AM by
DailyBail
UPDATE - French banking giant Societe Generale is fighting insolvency rumors, trading down 16% while French CDS spike on rumors of a credit downgrade of sovereign France.
Updated on Aug 9, 2011 at 4:14 PM by
DailyBail
UPDATE - DOW closes up 430 points.
The DOW is extremely volatile after the FOMC statement was released minutes ago, quickly shedding 200 points and trading down more than 60, before briefly turning positive again.
Full FOMC statement is inside. I have highlighted the section referring to a possible QE3.
CNN Video - Jack Cafferty - Aug. 8, 2011
Cafferty tells the truth about the debt ceiling and the irresponsibility of Washington politicians. Watch the first 3 minutes.
A few evening links:
Selected stories from around the web this morning.
CNBC Video - Santelli goes to war with Steve Liesman - Aug. 8, 2011
A must see from Monday afternoon after Obama's miserable press conference sent stock indexes plummeting.
Most interesting about the longer term chart (1970-2011) shown inside is the fact that the program is hard to escape. Once a family starts on food stamps, the chance of getting off the program is slim.
This is not good late-afternoon news for European equity and bond markets.
AMSTERDAM -(MarketWatch)- The Netherlands joined Germany Monday in warning against boosting the volume of the euro zone's rescue fund, saying it won't solve the problems in the currency area, and it even may hurt the solvency of guarantornations.
In a letter to lawmakers, Finance Minister Jan Kees de Jager said that an increased European Financial Stability Facility is "no panacea" to solve the mounting troubles in the euro zone. "Any significant increase of the EFSF can...have consequences on the creditworthiness of guarantor nations," he said.
A bigger EFSF therefore shouldn't be seen as an alternative to achieving structural reforms and debt sustainability, he added.
AIG sued BAC for $10 billion today (for massive mortgage fraud) which sent the stock down 21%. Details including a copy of the lawsuit are here. Story from CNN inside.
"We are advising our clients to put everything into canned food and shotguns."
Transcript:
In a sobering holiday interview with C-SPAN, President Obama boldly told Americans: “We are out of money.”
C-SPAN host Steve Scully broke from a meek Washington press corps with probing questions for the new president.
SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?
OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we’ve made on health care so far. This is a consequence of the crisis that we’ve seen and in fact our failure to make some good decisions on health care over the last several decades.
Latest updates Monday.
