.

Europe’s Coming Recession

.

.

Eurogeddon?

.

What worked – You saw Bernanke /Obama stimulate the USA Economy and lead the world  out of the feared “economic armageddon” of the Great Recession.

What’s not - Now we are watching European governments act, just like Republicans, introducing austerity measures way too soon and drive their economies into recession.

.

England & the EU are the

World’s Largest economic Entity

.

Therefore, It’s Recession or Possible

Eurogedden

Will Impact The World

.

___________

.

The Warning

.

.

Paul Krugman

.

Nobel Prize Winner – Paul Krugman – Has warned has warned of Europe’s impending doom in a series of editorials. The latest on 1/30, 1/31, 2/6, 2/18, 3/7 - Link Here if you’d like to read warnings

.

The Problem is European Leaders have

committed their people to

Sever Fiscal Austerity

.

Europe’s got the monetary (Introduce more liquidity) part right, but they are dramatically slashing budgets way too early.  Here’s some early GDP results.

.

Observe what’s happened in the last Year to GDP

Compare with the USA

.

United Kingdom GDP Growth Rate

Italy GDP Growth Rate

France GDP Growth Rate

United States GDP Growth Rate

You can use ANY European Country

and compare last years results with the USA.

We go up.

They at best go down slightly

At worst dramatically down

___________

.

DANGER WILL ROBINSON

DANGER DANGER

.

.

It’s Time to Bring out the old “Lost in Space Robot” with all his flashing lights, and flapping arms and warn of impending long term doom.

.

The Downward GDP Trend in Europe is CLEAR

The Upward GDP Trend in the USA is CLEAR.

Europe can drag the rest of the world down with it.

or

The US can drag Europe up with it.

.

The Solution has always been clear

to Investors411 readers

.

Before you turn the deficit hawks loose you stimulate, create jobs, and make sure the recession is behind you.

.

______________

.

Bottom Line

.

Its impossible to call the tipping point in Europe, a day, a month a year?

But its coming.



********************

.

STOCKS

.

.

Wall Street Bull and OWS Symbol

..

Insight into how Investors411 evaluates stocks, markets and trends can be found in the STRATEGY Section of the blog.

.

Headline

Eurogeddon

Caution – Figures in Below Graphic are dated.

Therefore, NOT Accurate

.

.

The First Warning signs

.

First – a graph from Zero Hedge on what’s moving stocks now

A Second Chart showing  globalized liquidity. The amount of $ Central Banks are flooding the markets with - LINK

.

  • Any meltdown (possible Eurogedden) won’t happen all at once
  • But this morning Germany – The leading Country in Europe – broke down through its support level.

.

Therefore, Our Long Long Term Bullish Bias

Becomes a bit shaky because of Europe

.

Bottom Line - The Central Banks still Rule, but the question of a deeper European recession will now get factored into stock prices. Unfortunately it looks worse than most predict.

Increased budget cuts are plunging Europe into a deeper recession.

______________

.

.

Old Faithful

The McCellan Oscillator

.

  • Our #1 technical forecasting tool, the McClellan Oscillator (MO) fell to -19.45. (for more see  STRATEGY link at top of blog and scroll down) MO is  = NEUTRAL

.

______________

.

.

Canary in a Coal Mine

.

Investors411 uses two gauges to determine how well Central Banks are doing at manipulating stocks.

  • Italian 10 year bond yield rose to the highest in a month 5.29% (8:15 AM EST) Well below the 7.00% Danger Zone but…

the Canary just Chirped.

.

**********************

.

It’s NOT the time to panic, because the Central banks will produce more liquidity if the problem gets worse.

However, China slowing down, Japan’s problems, a coming European recession are all drags on a remarkable US recovery.

Things  are NOT as long term bullish as they used to be last quarter.

.

Longer Term Outlook

3 months+

.

Still

CAUTIOUSLY BULLISH

.

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE

CHECK ALL DATA, I MAKE MORE THAN GRAMMAR  ERRORS.


  • Share/Save/Bookmark