Surely everyone has heard of JPMorgan Chase recently losing $3 Billion (and perhaps more) on rogue trading and the failed IPO (Initial Public Offering) of FaceBook stock on Friday; BUT, the on-going EuroZone Debt Saga continues to sway the markets. This issue has been fluctuating–a little UP and a little DOWN–over the past 27 months. When are the Europeans going to move or get off the pot?
Also, how long are the markets going to endure the EuroZone Nonsense? Today, the Dow Jones Industrials dropped almost by 200 points and then, in the last hour of trading, closed down by a mere 6.66 points. The reason was that, at a meeting of the EuroZone, it was anticipated that a solution would come out of it. The idea was that the EuroZone would issue some sort of Euro Bonds–backed by the seventeen countries that share the common currency.
Keep in mind that Fiscal (or Budgetary) Policy and Monetary (or Banking) Policy are disjointed within the EuroZone. Each of the 17 member nations manages their own Fiscal Policy, but Monetary Policy is managed by the independent ECB (European Central Bank). Even the Chairman of the ECB, Mario Draghi told reporters, in Brussels, that Euro Bonds would only make sense when The Zone has Fiscal Union. That is certainly something would take time and would not be received well by the EuroZone’s true financier–Germany.
So, stay tuned for more fluctuations. The member countries of the EuroZone seem to have painted themselves into a corner. The Zone is basically in a recession and Germany might be the only member country with projected economic growth. Also, banks throughout the group appear to be short of sufficient capital to finance their respective countries though this crisis.