Dow falls 236 points prior to Thanksgiving holiday.
Dow fell 236 points on Wednesday
The Dow fell 236 points on Wednesday based on a weak sale of German bonds and poor US consumer spending information, according to the Wall Street Journal. There are also rumors that Belgium cannot pay its share of the Dexia Bank bailout, threatening the credit rating of France and its ability to assist even more in the bailout.
France pushes Germany for greater ECB control
Reuters reports that the leaders of France, Germany and Italy are meeting today to further discuss the Eurozone debt crisis. France is allegedly pushing Germany to allow greater control for the European Central Bank after Wednesday's dismal German bund sale. Germany continues to insist that the EU treaty does not allow for the ECB to be the lender of last resort and that the ECB should not print additional euros in order to purchase government bonds.
France calls for sanctions against Standard and Poors
France is demanding sanctions against Standard and Poors, according to the Wall Street Journal, due to the publication of an erroneous report that indicated France had lost its Triple A credit rating. Standard and Poors indicated that an analyst had released the report in error, while France believes that in the current economic environment such a mistake has serious implications.
Consumer spending slowed in October
The Commerce Department indicated that consumer spending increased only 0.1 percent in October, down from 0.7 percent in September. According to the Wall Street Journal, personal savings rose to 3.5 percent in October up from 3.3 percent in September, the lowest rate since December 2007.
Social Media shares fall
Shares of the recently hot IPOs, including LinkedIn, GroupOn and Pandora have fallen 30 to 40 percent from their initial IPO price. In all cases, according to the Wall Street Journal, only a small percentage of shares were originally sold. LinkedIn Shares have fallen 30 percent. GroupOn shares, which surged to over $20 per share are now trading at closer to $16 per share. Pandora shares have held somewhat more steady in their pricing.
Millionaire Corner wishes you all a Happy Thanksgiving.
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.