The Week Unpeeled
It seemed to be the week of the “oops,” starting with Rick Perry at the Republican debates going into a brain freeze to S&P erroneously downgrading French sovereign debt. Big headlines in the US, however, focused on the Penn State/Joe Paterno scandal, MF Global shutting down and still looking for $600 million (oops!) and Silvio Berlusconi getting the boot as Italy’s PM. Elsewhere:
- Double dip in Europe? The EU Economic and Monetary Affairs Commissioner, Olli Rehn, admitted that European growth has stalled, which has lead to further speculation of a double dip recession. Rehn announced revised economic GDP growth figures for countries in the single currency of 0.5 per cent in 2012, down from an original estimate of 1.8 per cent;
- The Italian bond market spooked markets as yield soared and raised talk about the future of the common EU currency;
- 2005 YU55, otherwise known as a humongous asteroid, sailed past earth last week;
- Michael Jackson’s doctor was convicted of involuntary manslaughter;
- The Dow finished a volatile week up 1.4 percent to end at 12,153 (that following a nearly 390-point plunge on Wednesday).