“We were slightly optimistic that Greece would stabilize and there might be light at the proverbial end of the tunnel. But now it seems that the crisis of confidence has spread to Italy and we will all wait with anticipation to see if Italy will be able to weather this new storm. When there is no confidence in the markets, investors want more incentive and today we see Italian bonds hitting new highs.
This essentially means that investors are losing confidence in Italy’s ability to meet its long term debt obligations. We are now seeing two Western European democracies with government leaders on the verge of stepping down or already committed to do so. Somehow we must restore confidence on the global economic front and traditionally the United States has led the way. Our own debt rating has been downgraded and our leaders seem incapable of sitting down to lead us out if this mess.
There is a great opportunity to put aside politics and take a leadership role in restoring confidence in both our debt and equity markets, but sadly, politics will most likely override common sense.
The debt side of our own economy is weighing us all down. Additionally, we should be very wary of anyone who looks for easy answers or ways to make a quick buck on a stock market equity whim. The tech bubble burst was not long ago and anyone who believe that it could not happen again does not read history well,” said AJ Discala, CEO of OmniView Capital Advisors.
