In Europe, five governments have now fallen as a result of their debt crisis, with Spain being the latest. The bond vigilantes are busy circling Italy and have started circling Spain. France seems likely to lose their AAA credit rating soon. Their best hope would be for the EU to issue real euro-bonds, but Germany is dead-set against this. (They remember their pain a decade ago from bailing out just East Germany alone.)
In the U.S., the remaining investors who clung to hope of a SuperCommittee compromise are giving up and selling. The Dow is expected to lose over 160 points when it opens. I expect the U.S. to be down-graded by at least another of the three credit rating agencies soon. We won’t be paying the price until the Fed stops buying bonds from the Treasury, but delayed pain is the same as instant gratification, isn’t it?
The stock market will be very volatile this week, as trading volumes are low during the Thanksgiving week, which amplifies price movement. Still, it is a time for Thanksgiving, even on Wall Street and in Europe.
I came to Dallas to help a widow deal with her financial issues. That has a way of making you realize there is much to be thankful for . . .