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U.S. stocks decline on weak European growth
posted by
aaronrockies
281 days ago
in Trade
made popular 281 days ago
The major indexes bounced up and down in another volatile day. The Dow Jones industrial average fell more than 120 points in the first half hour of trading after a report showed that Germany’s economy stalled last quarter and dragged
posted by marybrooks 281 days ago
There is no way that the EU, ECB, IMF or any combination of the three, will have the ability to bail out Italy particularly with Germany's economy stalling (and most likely contracting by now).
Italy, the holder of the world's third largest debt in nominal terms, has the world's eleventh highest debt-to-GDP ratio and is unlikely to reduce its debt-to-GDP ratio to less than 115 percent even with massive cuts to its annual deficits as shown here:
viableopposition.blogspot.com/2011/07/italy-and-their-debt-bronze-medal.html
Should the remainder of the Eurozone economies contract, Italy will most likely be forced to default, an action that would send tremors through the world's sovereign debt market.