Markets continue to fall due to Eurozone and Super Committee worries
The Dow fell 134 points on Thursday closing at 11,770, as reported by CNBC, due to ongoing concerns over the Eurozone debt crisis and apparent disagreement among the Super Committee in the US, who is tasked with cutting the US debt. Global and Asian markets are down on Friday.
Likelihood the SuperCommittee will strike a deal is unlikely
The New York Times, as well as other major news publications, reports the likelihood that the Super Committee will strike a debt reduction deal by Wednesday is low. If it fails, $1.2 trillion of cuts will take effect across the board. Additionally, failure to reach an agreement will be seen as an inability for the government to play its role. The failure could dramatically impact consumer shopping since the deadline falls the Wednesday before the biggest shopping weekend of the year.
Role of European Central Bank may increase due to debt crisis
Once merely a stability source for printing money and fostering price stability, the ECB has become a central force in the European debt crisis, with countries, and the ECB itself, trying to clarify its role. Many are looking to the ECB to buy up bonds and print additional euros to stem off the debt crisis while other countries are seeking to moderate its role. The ECB, in conjunction with the International Monetary Fund and the European Commission have reviewed Portugal’s debt and given it a strong rating but are wary about 2012 because of an anticipated recession. The critical factor, according to the Wall Street Journal, is whether a global debt crisis can be controlled. The unclear factor is the role of the ECB and how it will be determined within the next few weeks.
Occupy Wall Street protesters not allowed full occupation
The New York police successfully prevented Occupy Wall Street Protesters from shutting down Wall Street on Thursday and arrested 200 people after multiple clashes, as reported by Reuters. It is believed that the size of the crowd was smaller than organizers had predicted but it did grow large at the end of the standard work day as marchers joined with union activists to parade across the Brooklyn Bridge. Seven police officers were injured.
Jobless clams drop to lowest level since April
Jobless claims fell again this week as the number of new people applying for unemployment benefits fell to its lowest level since April 2nd. Claims dropped by 5,000 to a seasonally adjusted 388,000, according to the Labor Department. This is the first time in seven months that the four week moving average, a more reliable predictor, fell below 400,000 to 396,750, as reported by the Wall Street Journal.
Standard and Poor’s to Issue Revised Bank Credit Ratings within the next few weeks
CNBC reports that Standard and Poor’s plans to update its credit ratings for the top 30 banks within the next 3 weeks and may downgrade several banks. Bank of America, Citigroup and Morgan Stanley are anticipated to be downgraded along with a number of European banks.
Consumer website and mobile offerings hit stock markets
Consumer review website, Angie’s List, opened at $18 per share on the Nasdaq on Thursday, up 39 percent from its initial offering price. It sold 8.79 million shares at the high end of its $11 to $13 range. Angie’s List offers a website where consumers can research, rate and hire local businesses. It is a subscriber website and only subscribers can rate and review its businesses. The Wall Street Journal also indicates that Yelp filed with the SEC to make an initial public offering of its shares. Yelp reviews restaurants, bars and other venues with reviews written by its users. The site has 22 million reviews on its site. Revenue is from local advertising but it has consistently been unprofitable.
Obama and Chavez lock lips on Benetton ad
A controversial ad by Benetton in which world leaders, including the Pope and an Egyptian imam, as well as President Obama and Venezuelan leader Hugo Chavez, are seen kissing one another on the lips has been taken down by the company, according to Fox News. The company was seeking to promote global love and tolerance but complaints have caused the company to remove the Pope-imam photo as well as the Obama photo. Opponents to the ad indicate it is disrespectful to world leaders.
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.