World stocks and the euro dropped sharply Tuesday as the massive relief rally triggered by a $1 trillion plan to contain Europe's debt crisis fizzled out amid concerns that the plan's backup loans won't remove concerns about the long-term solvency of indebted countries.
In Europe, the FTSE 100 index of leading British shares was down 108.43 points, or 2 percent, at 5,278.99 while Germany's DAX fell 73.19 points, or 1.2 percent, to 5,944.72. The CAC-40 in France was 75.32 points, or 2 percent, lower at 3,644.97.
Not enough toothpicks in the bailout? Who could have seen that one coming?
It's like watching a slow-motion train wreck, isn't it?
ReplyDeleteI don't even want to think about it :-(
ReplyDeleteYour picture is perfect, however...
Gold is now rising against all assets, in all currencies.
ReplyDeleteFrightening.
Maybe I should buy some more gold.
ReplyDeleteLady Red...your picture could be any one of my classrooms in elementary school...in the 1940's & early 50's.
ReplyDeleteLewy14....a movie I liked, "Empire of the Sun" directed by Spielberg, held that the most valuable thing on earth is the potato. Clavell's novel "King Rat" told a similar story.
How soon before we, too, value a potato over gold?
Gosh, I haven't read "King Rat" in years. Powerful book.
ReplyDeleteI don't have mountains of gold, or even mountains of potatoes, but we do have a greenhouse, a woodstove, chickens, ammo, and fishing poles. If things keep spiraling downwards, we'll be richer than George Soros. Imagine that! :)))
Ari, Gold is still rising against Cows. Gold to Cow chart.
ReplyDeleteOnce this trend reverses, and food rises against all numéraire - it's simple. We're f**ked.
Oh noes, the dreaded "dead cat bounce" formation...
ReplyDeleteimgw:"http://i35.photobucket.com/albums/d170/lewy14/deadcateurobounce.jpg"
Dead Cat Bounce...heh, I prefer the Irish Commedy Group
ReplyDelete