The First Domino Falls – ‘Nothing Will Be Spared, Except Perhaps Gold’ – Roberts: ‘The West Is Collapsing’
Greece Pulls Out Of Bailout Talks, World Markets Hammered, Australia Sees $35 Billion Stock Wipeout And Now Puerto Rico Talks Default
By Susan Duclos
All News PipeLine
July 29, 2015
he First Domino fell when Greek negotiators pulled out of the bailout talks and the world markets reacted badly, seeing losses almost across the board with Australia hit hard and fast with $35 billion wiped from the stock market. According to IG market strategist Evan Lucas, Australia has seen this loss despite having “little direct exposure to Greece.”
“It’s a very tough time and unfortunately nothing will be spared, except perhaps gold.” The slide was spread across the market, with banks, miners, retailers, healthcare providers and telcos all down sharply. Gold stocks nudged ahead as investors sought out safe-haven investments.
Following the pull-out from the bailout talks, Greek residents started withdrawing as much money from the banks as possible, causing lines at the ATMs until they ran out of money, and Greek banks have now announced a six day closure with ATMs limiting the amount of money depositors can withdraw from their own accounts. Residents have begun to hoard groceries and gasoline in preparation for a very bumpy ride.
FXTM chief market analyst Jameel Ahmad notes that “Greece is the weakest member of the euro.” Yet is is able to “hammer” the world markets to the extent that the German DAX, French CAC, Britain’s FTSE and the Portugal stock market all saw losses, with European bank stocks particularly hard hit. Spain’s Banco Santander (BCDRF) gave up 5.7% in early trading, while French bank Credit Agricole (CRARF) lost 6.7%. (Source – Money CNN)
Topping off economic collapse news, we now see that Puerto Rico “has decided that the island cannot pay back more than $70 billion in debt,” as reported by Washington Post on June 28, 2015.
The governor of Puerto Rico has decided that the island cannot pay back more than $70 billion in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the United States.
Puerto Rico’s move could roil financial markets already dealing with the turmoil of the renewed debt crisis in Greece. It also raises questions about the once-staid municipal bond market, which states and cities count on to pay upfront costs for public improvements such as roads, parks and hospitals.
The Rest…HERE
