Photo: ph-stop, Flickr
People are becoming inured to the rapid evaporation of wealth that’s taking place in Europe, specifically in the various national stock markets.Look at the numbers just today.
Spain’s IBEX 35 index is off another 3.6 per cent today.
The Greek stock market is down 4.66 per cent.
(It’s also worth noting that in Greece, stocks are back at 1990 levels, having fallen nearly 90 per cent form their 2007 highs.)
Italy is off a mere 1.22 per cent, which in normal times counts as being bloodied.
We’re starting to get the sense that these losses — which are huge — are no longer causing people to blink an eye. It’s just what people expect now.
If there is a silver lining in Europe, it’s that sovereign borrowing costs have remained fairly tame over the past several weeks as everything’s gone to pot.
There’s definitely a growing belief that Greece will leave the Eurozone… but a real contagion breakup is not yet seen as being in the cards.