Premium Financial News

The global financial markets are unlikely to see material improvement until European leaders formulate a solid, comprehensive plan to backstop their regional financial system. This is the heart of the current crisis. During the last few days, markets have suffered significant declines amid a variety of troublesome headlines. The Federal Reserve warned of “significant downside risks to the economic outlook” on Wednesday, and China and Europe both reported falling factory demand on Thursday. Neither headline mentioned Greece, or the European financial system problems, but if you peel away the layers of this onion, it still has Greece, and more particularly European bank concerns, at its center.Time has run out for European officials to find a legitimate solution to the Greek debt problem.European banks are in the midst of an old fashion “run”. And, investors have come to the conclusion that Greece WILL soon be allowed to default. It no longer matters whether this is true, or simply perceived. In the (…)