Posted By RichC on October 27, 2011
Earlier this year as 2010 rolled into 2011 many American though it might be safe to look at their IRA and 401K statements after the long recession … but as deficit and debt talks heated up and U.S. debt was downgraded due to continued Washington DC borrowing and spending this past summer … most of us grew pessimistic for 2011. Then in September our U.S. problem moved from the front burner and the Euro-crisis took its place as a yet another reason to question a recovery. Some are concerned which just keeping out heads above water and preventing another recession. Volatility has become the new buzz financial reporters use to describe the rocky up and down movements triggered by the news and rumors of the day. Most of us are trying to make sense of the interconnected economies around the globe and are shocked that the tiny Greece economy is seen as the tipping domino threatening the overall health of the world economy.
Today the 17 countries of the European Union have come up with something the markets are positive about … although imagine the harder working Germans or those trying to run responsible banks in Europe are wondering why they are be asked to pay for those who have been irresponsible. I’m not so sure that a "voluntary" 50% reduction of Greece’s debt is going to save the day if those who aren’t being productive don’t change their ways (Greeks retiring at age 50?).
ATHENS — 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. (LINK)
Eventually those countries choosing government controlled and heavy entitlement policies need to recognized the need to change. Makers can only support the Takers for so long (2010 link — 2011 Labor Day post).
Still, market in Europe and the U.S. are happy seeing some progress.
U.S. stocks soared in early trading, sending the Dow Jones Industrial Average pushed back above 12000 in a global market rally as investors cheered an agreement reached by European leaders on a plan to resolve the euro-zone’s debt crisis.
The Dow surged 262 points, or 2.2%, to 12131 in early trading …