It's being reported that one European bank has recently borrowed $500 billion from the European Central Bank. And that's the first time such lending has taken place since February.
Needless to say, at least some European banks are having liquidity problems. The recent statements from European banks like France's Societe Generale that they are fine are being called into question. Rightfully so.
This is reminiscent of the financial crisis because there are liquidity problems at banks, and we don't know how deep they run.
Plus, given that European leaders have been consistently behind the curve in dealing with debt problems, it's hard to imagine them being on top of any problems in their banking system.
On top of the Euro-bank problem, we also have weakening economic data. Jobless claims were up last week and the Consumer Price Index rose more than expected.
Gold prices are ramping again as investors flee stocks for safe havens. Treasury bond prices are up sharply, too.
Tomorrow is August options expiration. I suspect you could sell some covered calls to make a little money. The odds for a rebound for stocks seems pretty slim at this point.
It doesn't look good for the U.S. right now. We have a lot of work to do to get this country back on track. It could take 5 years...10 years...maybe more...
And I don't know many investors who can wait 10 years for their U.S. investments to get back on the winning path. I know I can't. And that's why I've created the U.S. Debt Protection Fund.
I'm Ian Wyatt of Wyatt Investment Research. My simple and easy to implementU.S. Debt Protection Fund will quickly and effectively protect your wealth as the dollar loses more and more of its value.
Trading Gold and Silver with Options With stock market volatility as high as it is right now, the potential to make money selling options is actually higher.
The Fed's decision to keep rates low for another two years was "the inappropriate policy at an inappropriate time." -- Philadelphia Fed President Charles Plosser
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