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The Justice Department launched its probe of Goldman Sachs (GS) before the SEC filed its civil fraud charge, and the probe casts a far wider net than the SEC did, Zachary A. Goldfarb and Jerry Markon of the Washington Post report.
This presumably contributed to Goldman's stock losing about $8 billion of market value Friday.
Now, a probe is not the same as a charge: The Justice Department investigates lots of behavior and later concludes that criminal charges aren't warranted (and as citizens, we should be deeply thankful for that).
Spanish Prime Minister Jose Luis Rodriguez Zapatero dismissed as "complete madness" a market rumor that his country would soon ask for 280 billion euros in aid from the euro area.
The euro sank to a one-year low of beneath $1.31 and the risk premium on Greek, Portuguese and Spanish bonds soared amid jitters about a possible Greek debt restructuring and worries over the fiscal health of other southern European countries.
In Athens, striking public workers challenged Greece's 110 billion euro ($146.5 billion) bailout-for-austerity deal, starting a 48-hour national strike that shut down ministries, tax offices, schools, hospitals and public services.
"There is no faith in what the EU and the IMF have proposed for Greece,"
I would like to point out for those who missed the press release Friday, the Lt. Governor of NY State announced that next year’s NY State budget deficit would likely hit $15 billion, on top of this year’s $9 billion deficit…Add in California’s $20+ billion deficit and the red ink of some other big States like Illinois, Texas and New Jersey and the world wants Greece to cut back spending?
If you want to put the “lense” of truth on the above news, please read this commentary from James Turk. Here is a quote from his commentary that is directly from the BIS (Bank for International Settlements – the global Central Bank of Central banks) report entitled ”The future of public debt: prospects and implications:”
First, fiscal problems confronting industrial economies are bigger than suggested by official debt figures…As frightening as it is to consider public debt increasing to more than 100% of GDP, an even greater danger arises from a rapidly ageing population. The related unfunded liabilities are large and growing…looming long-term fiscal imbalances pose significant risk to the prospects for future monetary stability…unstable debt dynamics could lead to higher inflation: direct debt monetisation, and the temptation to reduce the real value of government debt through higher inflation.
After a horrible close to trading last week markets on Wall Street rebounded with a surprising charge Monday afternoon. Stocks opened with early gains and stayed high throughout the day, but the daily gains weren't nearly enough to completely make up for the huge losses of the previous session.
The NASAQ led the way with a 1.53 percent (37.55 points) rise on the day; followed closely by the S&P 500 (1.31 percent, 15.57 points) and the Dow Jones (1.30 percent, 143.22 points).
Unfortunately, investment markets seem to be swinging wildly the past few days. A collapse last Friday was chased by a surge on Monday, now that surge is being chased by another collapse.
Originally posted by TheCoffinman
reply to post by Vitchilo
what effect would a euro collapse and several soverign debt defaults including the UK, what would it do to america?