These two crazy kids just cant keep their hands off each other. The rumor mill is ripping right now about the potential for Moody’s to downgrade French banks this week, that will be value added as always by the rating agencies. I am sure a downgrade of France would be simultaneous if not done shortly thereafter.
Anyhow, not good for global markets no matter how you slice it. This topic is near and dear to me as I have been writing about Europe on and off (mostly on lately). I said that Europe was just in the first inning of a painful ball game a year ago when many of the pundits, high on Pollyanna Quaaludes were sprinkling happy dust and European PM’s were lying like rugs to the global community. It’s DEFCON 1 as Europe has moved to the seventh or eighth inning backed up by armless infielders.
The indices are hanging by a thread here and it won’t take much for this market to take a Nestea Plunge, it all depends on Europe and I see nothing good.
$EWP, $EWG, $EWP, $DAX, $SPY