Stock Market Rebounds After Banks Are Downgraded
U.S. Stocks have already started to bounce back after yesterday’s big loss. News of several Giant banks getting downgraded by Moody’s, sent stocks tumbling down Thursday over several hundred points. By mid-morning Friday, stocks had turned around and went up nearly 100 points.
Morgan Stanley, Bank of America, Citigroup, JPMorgan and Goldman Sachs were the 5 major U.S. Banking institutions that received the downgrade along with 10 other international banks. The U.S. stock market rallied through the bad news from yesterday and continues to heal.
Leaders from Italy, Germany, Spain and France have agreed on growth-enhancing policies of around 125 Billion Euros. Luis Guindos, who is the Economy Minister of Spain, will request bank aid of 62 Billion Euros on Monday.
The Eurozone has a long road ahead in order to calm tensions in the financial markets. Many feel that the way to go is to invest in their economies and steer away from the harsh austerity measures that have made the situation much worse.
The U.S. relies heavily on the European markets for their financial stability. President Obama has been trying to convince Congress to pass a series of jobs packages to create jobs and stimulate the economy. He has had little success convincing Republicans who have blocked every effort.
Most economists believe that investing in the economy for the future is the best option. While saving money and cutting into the debt is important, complete austerity measures are devastating to every country’s economy. People are hoping that governments can come together and agree on the right solution.
Short URL: http://www.worldnewswire.info/?p=2190