Here we go again. Greece is back in the headlines, and the future of the euro hangs in the balance. Unable to form a government and waiting for new elections, Greek citizens have started pulling large amounts of money out of banks, and fears of a run on their local banks have increased. Italian, Spanish and Portuguese bonds yields are spiking. France has embraced a socialist leader. The Euro Stoxx 50 index has dropped nearly 20 percent in the last eight weeks. In the infamous words of baseball legend Yogi Berra, “It’s like deja vu, all over again.”
Investors want to know whether this is an isolated crisis contained to Europe or whether it could spread globally.
That stock markets around the world have plunged may be due to mass profit-taking after a furious market rally from the market bottom of seven months ago. Conversely, the market drop could be attributed to a growing concern that other countries such as the United States could face a similar fate as the Greeks. Feder
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