Seeking Alpha
June 22, 2011
After a few years of a so-called recovery since 2008, the world is still in turmoil. The markets are still wavering.
Protests in Greece, double-dip housing in the US, Moody's possible downgrade on Italy's sovereign credit rating, and China's inflationary growth issues are all running rampant. The markets have a lost a trillion dollars in value since the S&P came off its highs in April and we're seeing the index less than a few points away from correction territory.
In Europe, the sovereign debt issues and the monetary system pressures are causing a lot of pain. Billions of Euros are being taken out of the financial system while the financial exposure banks have to the PIG countries is causing major problems.
But have no fear (yet), Greece bailout number two may be here. On Friday, Greek Prime Minister George Papandreou replaced his finance minister. The markets liked that as investors were optimistic that crucial austerity measures will now be passed to prevent a devastating near-term debt default.
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