Greek Banks Under Pressure as Deposits Continue to be Withdrawn and Other Top News Stories of the Day.
Greek Banks Under Pressure as Deposits Continue to be Withdrawn
Due to fear over the outcome of the upcoming Greek elections, depositors continue to withdraw funds from Greek banks, according to the Wall Street Journal. Between 600 to 900 million euros have been withdrawn from the banks in the last few days and more is expected. The election to be held this weekend is anticipated to determine whether Greece will remain in the euro zone. The leftist Syriza party does not agree to any of the austerity measures of the EU bailout and is expected to walk away from the bailout. The competing party intends to work with the EU and to honor the required austerity measures. Credit Agricole, a French bank that owns a Greek subsidiary, anticipates walking away from the subsidiary dependent upon the outcome of the election.
European Woes Continue to Tap Markets
The Financial Times is reporting that European and Asian markets are reacting negatively to the downgrade of Spain by Moody's to one notch above junk grade on Wednesday. Today Spanish bonds are selling at 7.01 percent, above the level considered sustainable by the government. Italian bonds are also selling at high interest rates at 5.3 percent. Cyprus is allegedly predicted to ask for a bailout after the weekend. The Dow was down 77 points on Wednesday, closing at 12,496.
Countries With the Highest Unemployment Rates
As the U.S. struggles with an 8.2 percent unemployment rate, other countries are in an even worse position. CNBC released a report on the countries with the highest unemployment rates: 1. South Africa at 24.7 percent, however, unemployment has been above 20 percent since 1997, 2. Spain at 21.6 percent, 3. Greece - 17.7 percent, 4. Ireland - 14.4 percent, 5. Portugal - 12.7 percent, 6. Iran - 11.5 percent, 7. Colombia - 10.8 percent, 8. Turkey - 9.8 percent, 9. Poland - 9.6 percent and 10. France - 9.3 percent.
Nokia to Lay Off 10,000 Employees Globally
The Associated Press is reporting that Nokia plans to lay off 10,000 employees by the end of 2013. The layoffs will primarily occur in Germany, Canada and Finland. Nokia was the top cell phone maker in 2011 but has quickly fallen into third place due to efforts by Samsung and Apple to increase their presence in this market. Nokia stock plunged 7 percent upon the announcement.
Foreclosures Up For the First Time in 27 Months
Reuters reports that foreclosures are up for the first time in 27 months with 205,990 properties being foreclosed upon in May, up 9.1 percent from April. This is blamed upon the fact that the mortgage lawsuits against the banks have been settled allowing them to now move forward with many processes that had been stalled. Short sales were up 25 percent in the first quarter. This allows the seller to take less for the home than the amount they owe but the assets are paid to the bank. This results in higher prices for the homes rather than letting them sit in foreclosure. The median home price was up 3.2 percent in May from a year ago with an average of $194,900. These upcoming foreclosures are expected to remain a drag on the economy.
Average Tuition at State Universities Increases 15 Percent
The Department of Education has released a report that average tuition at 4-year public universities has increased 15 percent from 2008 to 2010, as reported in USA Today. This is primarily blamed on funding cuts from the states. The average cost of a community college, however, only increased 1 percent from 2007 to 2009.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.