To
add fuel to the fire, Dell missed second quarter projected growth and Morgan
Stanley was subpoenaed by regulators on the mishandling of the Facebook
IPO.
Of
course, even with all this news, Greece is still receiving most of the attention
with fears of default from the Euro. “Uncertainty surrounding Greece’s membership in the euro and possible
contagion into other countries plagued by high deficits just isn’t going away,
at least not until Greek elections have taken place on June 17th,” said Markus
Huber, head of German sales trading at ETX Capital in London.
EU leaders are to meet in Brussels today to discuss
growth strategies in order to try and offset a sovereign debt crisis that has
knocked out $4 trillion in equity markets worldwide this month.
Domestically,
the Congressional Budget Office (CBO) predicts a recession if the right budget
cuts are not put into place. The CBO warns that the US economy would contract
by 1.3% on the expired George W. Bush tax cuts, while an additional $1.2 trillion
of Federal budget cuts will go into effect in 2013. Because of the presidential election, Congress
is likely to avoid tackling these issues until our new President is named. Unfortunately, this will not give Congress much
time to come up with adequate solutions.
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