muses of the moment

February 17, 2009

S&P 500 down 3.8%

Filed under: The Financial Crisis — totallygroovygirlfriday @ 8:11 pm

Last night Eastern European countries came close to imploding on threat of national defaults. European markets plunged and the US market started its secession down 3%. It would have been uglier if the IMF (International Monetary Fund) didn’t step in last night. They apparently they have their own plunge protection team.

Anything can trigger this unstable global market. Eastern European (former Soviet Block) nations gambled high percentages on currency-based derivatives. The volatility in the currency markets is causing stress on their national financial health. There was a scare that any default in Eastern Europe could catch hold in main Europe (as many European banks financed these derivatives).

World investors are uneasy, you should be too.

Resources: Forex Failure Continues In Poland

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