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One Little Piggy, Two Little Piggies

Friday Feb 5 2010 1 11 PM CST

Picture 2 

We showed Spain yesterday, here is the ETF for Italy and the day is not over yet!

Our point to students is that debt ratings matter. The PIGS are in the news and fear of default is causing investors to sell all equities as well in those respective countries. The problem is that none of the countries in trouble, that have spent more than they take in, can print their own money ala the USA. This is the lynchpin of the Euro agreement, and why member countries agreed to abide by fiscal discipline rules when they were admitted. Whoops, we fudged. It appears this chart is in a third wave down with a fourth up to follow and then a final fifth down, so it ain't over yet folks. 
 

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3 responses to “One Little Piggy, Two Little Piggies”

  1. Tammy Salinas Avatar
    Tammy Salinas

    Wow, and I thought the first day the 4th was bad. I am worried about what this will mean not only for them but us. Are we going to bail them out?? I was listening to the radio yesterday I think 106.5 and they were saying the US was in a 16 TRILLION dollar debt ?!?!? WHHHATTT?!?? We will NEVER get out of this at the rate we are going and most likely end up if not just like , probably worse off than the PIGS.

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  2. Joy Avatar
    Joy

    Not only is the national debt at an all time high it is increasing daily and at a much higher rate than anyone expected.

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  3. LeAnna M Nesbitt Avatar
    LeAnna M Nesbitt

    Its a balancing of global economies between countries. One currency goes up and one goes down. It fluctuates on a daily basis on strength of that country.

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