Photo: Bark on Flickr
The markets are heading down and everyone’s freaking out, regardless of any good news out of the U.S., Europe, or China.Pressures on investors seem to be closing in from all sides, and cynicism rules.
That said, we’re not sure what has changed since the market rallies we saw last month. We’ve been seeing signs that a slowdown in China could be imminent for months, Europe is no worse off than we were reporting in August, and positive economic data from this week and the last should bolster markets.
Yet equities continue to tank.
In Europe, investors are running from Brussels-based bank Dexia. The bank's stock lost more than 10% today after Moody's threatened a downgrade. Company board members are reportedly holding an extraordinary meeting to discuss.
Future European Central Bank head Mario Draghi said that (European?) banks obviously have funding problems. He's the current head of the Financial Stability Board, but will take over leadership of the ECB in November.
The euro plummeted after his comments.
Credit Suisse is predicting that Goldman Sachs could see a $0.70 per share loss in the third quarter, way down from previous expectations of a gain.
Deutsche Bank and Barclays also cut their earnings expectations for the investment bank last month.
Greece is going to fall short of bailout expectations, with its deficit expected to drop to 8.5% of GDP for 2011 and 6.8% of GDP in 2012.
These numbers disappoint despite major austerity measures the Greek government has introduced over the last few weeks. Protests in Athens rage on.
California Attorney General Kamala Harris pulled the state out negotiations with big banks accused of using abusive foreclosure tactics to kick troubled homeowners out of their homes.
This stalls attempts to reach a settlement agreement with the nations biggest lenders and 'could derail investigations into Wall Street's role in the mortgage meltdown,' according to the L.A. Times.
The Magnablend chemical plant located outside Dallas, TX, is literally going up in smoke. The plant produces explosive industrial chemicals like ammonia, that are bursting into flame.
Luckily, no injuries have been reported.