Posts Tagged ‘Greece’

May 6th Crash Not a Result of a Trading Glitch

NEW YORK: Yesterday’s record intraday crash in the stock market was not a result of trading error (see video below). There are enormous pressures on our financial markets due to profligate spending by out of control governments. Greece is just the first to fall due to  weakness in the Greek economy.

The US is not immune. Moody’s has issued three warnings to the US which could have severe repercussions if not heeded. The US has been able to stay behind Europe in the race to financial and social instability, largely because many of the socialist programs have not been implemented here as widely as in the EU, at least until now. However, the Obama administration is pushing full steam ahead in an effort to force the US to follow Europe’s bad example, an example we don’t want to follow.

It is our free market that has kept us out of trouble until now. Our productivity and hard work far outstrips Europe’s:

Let’s get real. There’s almost no comparison between the U.S. and Greece or other failed European states. By almost any measure, the United States has outperformed Europe for decades.

This is especially true when it comes to productivity, a fact that only now seems to be dawning on the people of Greece if not Europe in general. We have noted with interest that, from 2002 to 2008 alone, American productivity grew 28% — a rate 50% higher than among the 10 biggest economies in Europe.

From 1980 to 2009, real GDP per person — the best broad measure of both productivity and standard of living — grew 6% faster in the U.S. than in Europe. Sounds like a small difference, but it isn’t. In 1980, the average American produced just $4,500 more in GDP, after adjusting for inflation, than the average European. Today, the gap is $8,236 — and growing wider. Investor’s Business Daily

Yesterday’s intraday crash of 9% in just minutes set a record. As always there is always a rush to blame computer trading or some other glitch, anything to draw attention away from the underlying instability in the markets. Tom O’Brien of (below) makes clear that this was no trading fluke.

It’s time for hard-working, tax-paying Americans to wake up and fundamentally transform America ourselves. We need to throw out the career politicians who steal our money to buy votes from those who want a free ride at our expense.

Categories: Economy, Videos Tags: ,

Greek Collapse Spurs Selloff, Greek Retirement Age as Early as 50

May 6th, 2010 2 comments

DJIA Loses 1000 point in minutes

DJIA Loses 1000 point in minutes

NEW YORK: The stock market sold off today in huge volume. A DJIA key support area of 9835 was nearly taken out as the Dow dropped 1000 points in minutes. Stocks recovered quickly but still ended the day down 3.2%. The selloff was in response to the collapse of the Greek economy and the enormous protests in that country due to conditions placed on bridge loans from the IMF and the EU.

Tear gas, riot police, fire bombs, rock throwing and violence abound in Greek streets as Greeks respond to inevitable reduction of benefits. One key benefit is their retirement age, as early as 50:

Vasia Veremi may be only 28, but as a hairdresser in Athens, she is keenly aware that, under a current law that treats her job as hazardous to her health, she has the right to retire with a full pension at age 50…

It is still difficult to explain to outsiders why the Greek government has identified at least 580 job categories deemed to be hazardous enough to merit retiring early — at age 50 for women and 55 for men. Read more…

Categories: Economy Tags: ,

Spain’s Credit Downgraded, Greek Debt Downgraded to Junk

April 28th, 2010 No comments
Greek demonstrators scuffle with riot police outside the Finance ministry

Greek demonstrators scuffle with riot police. Photo AFP

ROME: Today Spain was added to the list of countries with severe debt problems. Standard and Poor’s cut Spain’s rating down from AA+ to AA. This step came just one day after S&P downgraded Greek debt to junk status, and Portugal was downgraded two levels. Today’s action spooked Italy’s investors enough to prompt a selloff in Italian government bonds.

European countries are faced with massive debts due to overspending on government entitlement programs and the result is general economic destabilization. Greece’s economic problems are spilling into the streets as a general default looms. Last week’s talks of EU and IMF bailouts have been met with resistance, and the result is an 80% chance of a Greek default this week. If so, French and German banks could suffer massive losses.

The NIP has warned repeatedly that overspending on government entitlements lead to unsustainable debt loads. The inevitable downgrades of the credit of sovereign states lead to civil instability. The US is not immune. Moody’s three warnings to the US signal a possible beginning of the end to US dollar strength and economic stability.

It’s time to throw out the politicians who buy votes with other people’s money. They are spending our countries into oblivion. Instead of putting their citizens to work, politicians all over the world support the unemployed with massive subsidies. Politicians care only for votes, not for the welfare of the countries they serve.

Categories: Economy Tags: ,

Why Trust Government With Financial Reform?

April 23rd, 2010 No comments

SEC workers spent hours at work watching online pornATHENS: Faced with massive debt, Greece today initiated an emergency plan to borrow money from the European Union and the International Monetary Fund to help it make interest payments and keep it from default. Their bailout request comes at a time when interest rates are at historic lows. In the US the Federal Reserve is monitoring interest rates and is signaling its intention to preserve these low rates for the near term.

If Greece is able to borrow some $40 billion (at interest rates of about 5 percent) it is likely to be able to remain solvent through the end of this year. European governments are reluctantly considering their request, afraid of the consequences of a Greek default and its rippling effects throughout the EU. Conditions are sure to be attached to the loans, requiring the Greek government to make substantial cuts in services and benefits to its citizens. Reaction to such stipulations are likely to invoke further civil unrest against the backdrop of riots that have plagued the country this year: Read more…

Categories: Economy Tags: , ,