Today the Dow is expected to be severely down. Is Spain’s 3 month short selling ban creating this?
Our answer is a resounding “No”! The ban cannot be the sole reason with the weakening European markets. The markets are selling off because these European countries simply cannot get their fiscal house in order. Spain’s economy is contracting. Germany is threatening to cut off the money supply to Greece. Ten Italian cities are facing default. The Euro is collapsing. The unsustainable bad habit of spending more than you have will create dire results for Europe.
The rest of the world is losing patience waiting for a permanent and viable solution. Europe’s debacle will hinder a US recovery. This situation will affect November’s election. It is time for tough love.
