Should you be worried about Europe? The headlines seem so overwrought.
The European Central Bank bailing out Italian and Spanish bonds. French President Nicolas Sarkozy cutting short his vacation on the French Riveria to noodle over the trouble with finance ministers.
Imagine, a French president working in August! Quelle d’hommage!
I know it seems far away — an ocean away — and completely unconnected to you and your money. But the truth is that because markets are all so intertwined these days — palais de la bourse — is closer than you think.
So much nicer than the NYSE, no? Here’s why you should care.
After all, prime money market funds have half their assets in debt related to European banks. And, those banks have been under assault.
France’s big bank: Societe Generale rebounding slightly today – after falling around 20% yesterday The banking sector led Paris’ CAC-40 to close down yesterday nearly 5.5%.
Experts say those fears are overblown. While these funds do have a large exposure to French banks, they say ratings on the short-term debt of these banks remains high. The very nature of the investment means that holdings turn over quickly leaving less exposure to risky notes. More
0 Recommend This