Stocks Plunge on Fears of Another US Recession – Something Obama Says Is Not Happening (Video)
On Monday, during his magical misery taxpayer-funded bus tour of the Midwest Barack Obama told an audience that his administration had reversed the recession.
But, that was Monday…
Today, world stocks plunged on growing fears that the United States is heading towards another recession.
The Associated Press reported:
Global stocks slid again Friday as fears of a possible U.S. recession combined with ongoing worries over Europe’s debt crisis, which is stoking acute fears over the continent’s banking sector.
European banking shares hit a near two and a half year low on renewed worries of the health of the continent’s banks, while safe-haven gold prices nudged up against the $2,000 an ounce mark, and crude prices fell as investors feared a global slowdown will zap demand for crude.
“This week has seen a continuation of the trend of weaker than expected data and political reaction to the European problems which pretty much amounts to ‘Let’s have a get together a couple of times a year,’ ” said Gary Jenkins, an analyst at Evolution Securities.”
Britain’s FTSE 100 lost 2.1 percent to 4,987, while Germany’s DAX fell 3.3 percent to 5,394. France’s CAC-40 was down 2.8 percent to 2,989.
Wall Street was headed for another slide, with Dow futures down 1.5 percent to 10,849 and S&P 500 futures 1.7 percent lower at 1,124.
Market turmoil, marked by selling off risk positions, of the last two days has dashed any hopes of a quiet second half of August — a normally quiet period when trading dries up until the U.S. returns from the Labor Day holiday in early September.