MOODY’S DOWNGRADES SEVEN GERMAN BANKS
Moody’s rating agency downgraded seven banks in Germany on Tuesday citing risks from the eurozone debt crisis and weaker global economic growth. The Associated Press says that the most prominent bank downgraded was Germany’s second largest bank, Deutsche Bank, which was downgraded from A2 to A3 with a negative outlook. Germany’s economy has remained robust throughout most of the Eurozone debt crisis.
European Central Bank proposals impact markets
The European Central Bank, a key figure in the Eurozone debt crisis, met today and proposed a greater coordination between governments and the banks. It hopes that governments will give up some sovereignty to create a nationalized banking system. Its proposal did not resolve any short term issues. According to Reuters, the ECB first wants commitments that European governments will stick to their agreed upon actions before it cuts rates, extends loans, or buys sovereign bonds. The Spanish government has been appealing to the ECB to purchase its bonds but has not yet appeared to be successful. Experts indicate that it is likely the ECB will wait until the month end to make any decisions on short term actions as it awaits the outcome of the Greek elections. Both Asian and European markets are positive today, however, with the anticipation of the ECB meeting. The Dow closed up 26 points on Tuesday, ending at 12,127.
Nasdaq to compensate brokerage firms for losses sustained during Facebook IPO due to software glitches
Nasdaq is set to begin to compensate brokerage firms whose trades were not properly executed due to software glitches during the Facebook IPO, according to the Financial Times. The glitch occurred because many firms had sent in sell orders prior to the opening of trading which delayed the opening more than 20 minutes. Firms were not notified whether their trades had been executed for several hours.The amount of money Nasdaq plans to make available will be announced on Wednesday after the close of market.
Greece warns of going broke as taxes dry up
Greece has warned that it is rapidly running out of money and will not be able to pay salaries or pensions. Additionally it will not be able to pay for imports of food, fuel or pharmaceuticals, according to the New York Times. Greek leaders indicate that despite their latest bailout of 130 billion euros, or $161.7 billion, they face a shortfall of 1.7 billion euros because tax revenue and other sources of income are drying up. The recession and budget cuts have left the businesses and individuals with less to pay for taxes. The Eurozone is withholding additional payments until after the mid-month election in Greece.
Only one in six new high school graduates will find work
Despite the fact that many college graduates are not finding the jobs of their dreams, those with just a high school diploma are faring much worse. According to CNBC, only one in six is working full time. Three out of five live with their parents. Seventy three percent feel they need more education but can’t afford it. A report from the John J. Heldrich Center for Workforce Development at Rutgers indicates that only 16 percent of the high school classes of 2009-2011 have full time jobs. Despite the national debate regarding whether taking on debt for a college degree is worth it, these individuals believe more education would help them find a job. Either the cost of education or living situations, such as young children,have prevented them from getting a degree.
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.