Do Americans, waking-up to the fact that Greece has voted NO to its creditors demands, also understand the risks posed by China and Puerto Rico?
Not to mention the potential for serious financial angst in other U.S. cities and countries around the world such as Italy and Spain when they see how Greece makes out.
The answer is the majority who receive their news from a variety of sources that are typically focused on other, more non-pressing issues, are likely unaware of the headwinds facing governments and financial markets both in the United States and abroad.
But, given the fact that the global economy is inextricably linked, all need to sit-up and take notice.
The reason? After 7-years of global central banks infusing trillions of dollars into economies around the world with little growth to show for it, the bill for this easy money binge may be coming due!
And whether you make your living in retail, real estate or rodeo exhibitions, the hangover could be painful.
Some of the stories to keep an eye on…
|
Greece voted no. The Greek people overwhelmingly voted against accepting a bailout proposal from European creditors. The final tally showed 61% voted “no,” a major surprise even though Prime Minister Alexis Tsipras’ government had campaigned for the outcome. Sunday’s outcome set off a huge celebration in Athens’ Syntagma Square. Greece’s two-year yield is up 1,565 basis points at 50.48%. Greece’s finance minister has resigned. Yanis Varoufakis announced his resignation on his blog. Greece’s former finance minister said: “I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners,’ for my … ‘absence’ from its meetings; an idea that the prime minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.” Yannis Dragasakis, Giorgos Stathakis, Euclid Tsakalotos, and George Chouliarakis are being considered to replace Varoufakis. European leaders will hold an emergency summit on Tuesday.European Union president Donald Tusk has called an emergency summit in response to Greece’s rejecting the bailout proposal from its creditors. Also, Eurogroup president Jeroen Dijsselbloem announced a Tuesday meeting to “discuss the state of play.” The euro is weaker by 0.7% at 1.1038. China suspended IPOs and created a ‘market-stabilization fund.’Beijing announced the measures in an effort to provide stability to the topsy-turvy Chinese stock market. The suspension of IPOs was implemented in hopes of stemming the rush of capital from existing listings. Meanwhile, the “market-stabilization fund” is made up of more than 20 brokers who pledged to buy at least 120 billion yuan ($19.3 billion) in shares. Chinese stocks saw a roller-coaster ride. China’s Shanghai Composite finished higher by 2.4% amid a volatile session. The index opened with a gain of more than 8.5% before sliding into negative territory shortly ahead of the European open. A lately rally lifted stocks comfortably above the breakeven line. Elsewhere, Hong Kong’s Hang Seng (-3.2%) led Asian markets lower as trade entered a technical correction, now 11% off the April high. In Europe, Spain’s IBEX (-1.8%) paces the decline. S&P 500 futures are lower by 9.75 points at 2,059.00. (Source: Business Insider) Puerto Rico…A looming debt crisis in Puerto Rico is setting off a fresh fight in Congress, where lawmakers are debating a statutory fix that could allow the island territory to declare bankruptcy. Advocates of the change say it would resolve a technical oversight from a decades-old bankruptcy law, while skeptics warn that it could throw into question billions of dollars in debt now owned by investors across the country. Earlier this week, Puerto Rico’s governor declared that the nation’s $72 billion pile of debt was too much for it to handle. To avoid a “death spiral,” Gov. Alejandro Garcia Padilla said the commonwealth would have to break its promise to pay back some money owed. (Source: The Hill) Related Articles ____________________________________________________ Article author Michael Haltman is the President of Hallmark Abstract Service in New York. HAS is a provider of title insurance in New York State for residential and commercial real estate transactions. |
Pingback: My Big Fat Greek Analogy | Hallmark Abstract LLC