There is no joy in mudville, perhaps the EU banks have struck out.
Although the European Union has committed nearly a trillion dollars to backstop the latest bank failures in Ireland, the number that it will take to correct the problem seems to be inevitably rising. Amidst the uneven economic backdrop, some have speculated if the Euro will be able to be kept together, or if there will need to be a break in the economic unity. The pacts that govern debt to GDP ratios have limited single nation responses to issues within their borders, and these woes have now come to a head.
With all of the money backing the necessary bailouts of the EuroZone banks and governments, it looks as if there is little more than continuing fear that has investors pulling money out of related investments. So, even six weeks later and $100 billion or so going to bail out Ireland’s banks and sovereign bond woes, there is no happiness in the Euro region. Stocks sunk today on the news, and compounding this with a new federal investigation into insider trading at Goldman Sachs Group Inc. (NYSE: GS) and raids on hedge fund offices in Connecticut and we’re looking at a tumultuous trading environment in the near term.
