Yesterday’s market action may well prove to be what’s called a “dead cat bounce”. In other words, after a big drop, the market always bounces a little bit before continuing down.
Well, this morning, markets in Europe are plunging again. The British, French, and German markets are all down by more than 3% by 6 am eastern. If the DOW were to follow suit, that would be the equivalent of a 500 point decline coming for today. Not good.
In France today, socialist President François Hollande announced that France was already in a state of “economic and social emergency.” He also said that rampaging fears about the worsening financial situation in Germany could topple the entire Eurozone.
Unemployment in France has surged to an 18-year high of 10.6%. In Germany, industrial production growth has slipped to 0%.
France seems to be sticking to the “inclusive” model, firmly burying there socialist-inclusive heads in the sand and hoping for the best.
President Hollande will now pay 2,000 Euros to any firm that employs a young, unemployed person for at least 6 months. However, Hollande reassured voters that France’s 35-hour work week is not on the table – just yet.
In Germany, the “head burying” continues apace, as 40 of her 256 Christian Democratic Union (CDU) MPs sent her a letter demanding change to her liberal refugee policy.
“We are on the verge of our country being overwhelmed.”
On the verge? They took in 1.1 million migrants last year – that’s 1 and a half percent of the entire population – a population that has been relatively stable for years. And guess what; there is a minimum of another one million enroute and two more million queued up on the Turkish border.
You can talk about lagging production and consumer confidence all you want to divert attention, but migrants are the central problem, and will be for years to come now. All nations had better face up to that problem – including the United States.
I’m still reporting from Washington. Good day.
Names: In loving memory of John & Kay Cunniff – the Bronx, NY – 1950s – their son, Kevin