Dow Jones | 13008.53 | -29.74 | (-0.23%) |
S&P 500 | 1369.58 | +0.48 | 0.04% |
Nasdaq | 2957.76 | +1.42 | 0.05% |
S&P TSX | 11844.62 | -26.61 | (-0.22%) |
EURO STOXX 50 | 2283.09 | 34.75 | 1.55% |
CAC 40 | 3214.22 | 52.25 | 1.65% |
BSE Sensex | 16912.71 | 81.63 | 0.49% |
S&P/ASX 200 | 4301.3 | -94.7 | (-2.15%) |
Shanghai | 2451.12 | -0.89 | (-0.04%) |
Nikkei | 2259119.14 | -261.11 | (-2.78%) |
Hang Seng Index | 20536.65 | -549.35 | (-2.61%) |
TSEC | 7538.08 | -162.87 | (-2.11%) |
Before European and North American markets opened up this morning, the media was quick to pounce on the uncertainty of the anti-austerity election outcomes. There was no retraction issued however, when most of the western markets ended up in positive territory.
Perhaps it's (western market reaction) because upon reflection, nothing really changed. The Eurozone crisis was always present, even if put off for another 6~12 months under the Germany+ECB plan.
Let me sum up what Germany + ECB response was to the Eurozone crisis:
If you continue to
They never addressed the core problem of having a unified currency other than to reemphasize that all EU nations must stick to their Maastricht Treaty 3% deficit-GDP and 60% debt-GDP ratios -- which by the way, half of the EU nations do not comply with, as of March.
Germans should be worried.
If Greece and other periphery nations leave the Euro currency, the Euro will look more like a noose. Having resurrected their own currencies, countries like Greece will be able to rebalance their labor and material costs relative to the Euro, making Greece look like a bargain investment zone compared to the Eurozone. In turn, existing Greek debt will cheapen with inflation.
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