Disagree, strongly, with the last part. Greece may fail, but there is enough strength to cover that off among the EU powers. Spain or Italy would be another Lehman 2008, catastrophic everywhere.
How does the Euro fail? I forget the exact number but there are something like 17 countries involved. They are looking at putting together a 'EuroBond' to finance potential problems like Greece Spain et al...whether they get there soon enough is another story......but there's way more than enough economic firepower to do it if they can gather the political will.
Technically, the US markets at the close did not go as low as the August low close, which is taken to be a good sign...not carved in stone but generally *should* mean it's just a test of the prior low...note that they bounced up hard, recovering about 25% of the day's losses in the last hour. Wouldn't be surprised by a pretty big bounce tomorrow, say 200 on the Dow. But, of course, it could easily go the other way.
To an earlier point in this thread, I was standing in front of the TV just screaming 'LET THEM FAIL', particularly the GM bailout but some of the others too. I am in agreement that they should have taken a harder fall and get the pain into the past, the dip would have been worse but the recovery stronger.
Canada, with its resource base, and speaking very broadly, is in much better economic shape than some might think. Our dollar has fallen under par recently, as our resources are less needed in the case of a global slowdown PLUS the USD has risen as people buy it as a safe haven (I know, right? but skeptic or not, it is very true). But look out 5-10 years and we will STILL be the envy of much of the world, for our standard of living and stability, imo.
Will there be some pain? Yes. Are we 'screwed'? I choose to think not, with eyes wide open.
