Euro Politics Tank Wall Street Q-2 Gains
Voters in Greece and France rattled global markets…by in effect..throwing out the politicians who were trying to cut government spending…to slow their national deficites.
Voters rejected tightening their budgets over the weekend – leaving Greece with no ruling party and a growing economic crisis.
By late afternoon…Greece was unable to form a new coalition government. It looks like it may take a while before Greece has a stable coalition to deal with its’ growing financial problems.
Alan Valdes, a Wall Street Floor Trader for DME Securities told CBS News Monday “You really have a failed state over there”.
And it turns out the political storm in Greece may be spreading. Voters in France elected the Socialist Candidate who doesn’t support Europe’s austerity plans. And that’s another rejection of Eurozome Plans to cut spending in an effort to improve both countrys’ bottom lines. It’s also aimed at trying to better guarantee France and Greece can pay their bills and won’t default on critical loan payments.
The White House says President Obama is closely monitoring Europes’ continuing political and economic problems.
White House spekesperson Jay Carney says “A balanced approach to toward fiscal consolidation and growth is what he believes appropriate”.
U-S Investors were following European and Asian market closely, and by Tuesday, it looked like Wall Streets Losses would continue to drive the Dow under the 13,000 mark.
Wall Street bounced up and down all throughout the weeks’ early trading.
Josh Mungavin of Coral Gables Evensky & Katz warns ” You’re going to see a bumpy ride for ahead for 2012. we’ve not only got what’s happneing in greece and france..with some concerns about reigning in their spending after the recent vote..But we’ve also got an upcoming prresidential election in the U-S and some tax laws that might be changing around the corner”.
So what does it mean to our retirement and investment accounts?
Some local money-managers say it’s now critical to diversify your investments among stocks, bonds and savings, because political changes here and abroad could make the rest of the year a rocky ride for Wall Street possibly thru the Fall.