Despite much fanfare at a summit last week, European leaders failed to convince global investors that they are on their way to solving their massive problems with debt and recession.
Stocks closed sharply lower Monday after two big rating agencies criticized a fiscal pact between European leaders last week that is aimed at easing the region's debt crisis.
Fitch Ratings thinks the United States is still a AAA country, but its optimism disappeared this week. The credit evaluator downgraded the outlook for the U.S. economy to negative despite the recent bump in consumer spending and a slight improvement in employment numbers for November. It's hard to look at the inability of Congress to come up with credible spending cuts without a feeling of impending doom.
Fitch Ratings said Monday that it will keep its rating for long-term U.S. debt at the top AAA level, despite a congressional panel's failure to agree on long-term deficit cuts. But it is lowering its outlook to negative.
Did the great Jon Corzine not learn from the greatest financial meltdown seen in the U.S. economy? The answer is simple, here is another example to the entrusted "gambling with other people's money."
A spike in borrowing costs for the Spanish government renewed worries about Europe's debt crisis and pushed stocks lower for the second day in a row.
A warning from Fitch Ratings that large U.S. banks could be hit hard if Europe's debt crisis spreads sent stocks on a downward spiral late Wednesday.
Anyone who looks at a price chart for the S&P 500 over the past three months will likely paint a picture of a roller coaster in their mind, and that would be a fair characterization. During these past weeks, the S&P 500 has experienced four climbs, followed by four drops, a few of which much like a world-class roller coaster have been steep and quick.
The jobs crisis isn't getting worse. But it isn't getting much better, either.
