It is more (financial) bad news for the world economy!
Now it is Greece that may be in over their heads and about to default on the debt they owe. This caused the U.S. stocks to fall decidedly on Monday the 12th of September, just one day after the world mourned the events that occurred ten years ago causing the tragedy that was 9/11. Greek bonds could be the downfall of French banking institutions and a further down grade may bring even more instability to the troubled financial system in Europe. Investors are worried that should Greece default on their debts there will be a domino effect possible concerning many other nations around the globe.
Just as we climb out… they pull us back down!
Financial instability is rampant around the world and even the U.S. is not immune from further financial woes when most of Europe is teetering on the brink of another crisis. Monday began with indexes for both Nasdaq and Standard & Poor’s 500 sinking into negative territory and the Dow Jones dropped over 100 points shortly after the opening bell rang. Europe’s DAX (Germany) was down by 1.9% at 5091 and the British leading shares, the index for the FTSE 100 fell to 5140 at 1.2%.
Japan currency is healthy but it is more expensive to buy
Asian trading sessions were dominated by sales and the strength of currency in Japan seems to remain strong but when the world is buying overseas each item tends to become more expensive. Tokyo’s Nikkei 225 stocks closed down by 2.3% at 8,535.67 which is the lowest it’s been since April of 2009. Some of this may be due to the resignation of a trade minister who’d only been in office for eight days before deciding to quit. Now it’s up to the Prime Minister, Yoshiko Noda to work out reviving the Japanese economy which has been in trouble since the earthquake last March 11, followed by devastating tsunamis and a serious nuclear crisis. The world is definitely intertwined when it comes to financial security and stability.
