THE EUROPEAN DEBT CRISIS KEEPS EXPANDING
Greek debt has been rated as junk quality, Spanish and Portuguese debt have undergone downgrades and there are rumors circulating of a possible Italian debt downgrade.
This reminds us of the so-called Asian Contagion of late 1990’s during which bank and government debt contagion sent Asian markets down dramatically and caused the value of several regional currencies to fall. At that time, the U.S. and European markets, which were not part of the crisis, corrected by over 10 percent and then quickly recouped and were followed by market rallies. If the current European . . .
Continue Reading: MARKET SOPHISTICATION AN ILLUSION?
