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| Fellow Investor, In 2008, we knew that the mortgage-backed securities depleted the cash reserves at banks to the point that they were insolvent. In January of 2010, it was the uncertainty of Greek sovereign debt along with other European countries that caused a very sharp pull back for stock prices.
But it's more difficult to find a culprit for the declines we've seen lately.
Yes, there have been weakening economic data, to the point that GDP growth may be below the 2% line. That's close enough to negative growth that some are throwing around the "r" word: recession.
The debt concerns in Europe have spread even to France. Rumors about France's biggest bank Societe General, or SocGen, have been swirling ever since the U.K.'s Daily Mail reported that fears were growing that SocGen was on the verge of collapse due in part to its exposure to Greek debt.
The Daily Mail has since apologized for the report, and removed the article from its website. Rumors of SocGen's demise were, apparently, premature.
I'm sure we all remember the fear we experienced in 2008 when the markets were in freefall. Some of the causes we knew, others were nebulous, bogeyman type fears that lurked just beyond our ability to know them, name them, and thus, control them.
The recent declines in the stock market have felt that same way. We know some of the issues, but there still has seemed to be a big, nasty bogeyman lurking out there.
And truth be told, SocGen's assurances that they are fine are reminiscent of Bear Stearns and Lehman Bros in the days before they went down.
Of course, there's no way to know if SocGen is really in trouble or if the rumor-mill is in full spin. But the speed with which a true crisis hits might suggest that the SocGen saga is more rumor than truth... [article continues at WyattResearch.com] 
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Market Snapshot
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| US Markets - August 10 Close
| Dow Jones
| 10,719.94 | -520 | (-4.63%)
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| S&P 500
| 1,120.76 | -51.77 | (-4.42%)
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| Nasdaq
| 2,381.05 | -101 | (-4.09%)
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| Currencies
| EUR/USD
| 1.424 | +0.008 | (+0.539%) | 
| USD/JPY
| 76.845 | +0.08 | (+0.104%) | 
| GBP/USD
| 1.621 | +0.007 | (+0.47%) | 
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