NEW YORK — The drop in a key interest rate to a 66-year low is a sign of one thing — fear. Traders don’t actually think a Treasury note paying 1.62 percent is a good investment. They just trust Uncle Sam to keep their money safe if Europe falls apart.
WASHINGTON — On paper at least, European leaders agree: They need stronger growth measures to help their economies expand out of their 2 ½-year-old government debt crisis. Figuring out exactly what those new steps might be will be the hard part.
Late last week and over the weekend, a flurry of developments related to the near and longer term economic outlook took place, most of which could be a cause for concern.
PARIS — The day after Francois Hollande rode to power in France on a slogan of “change now,” the conversation in Europe was already different Monday: Austerity had become a dirty word.
Europe is economically big — very big. The 17 nation euro-zone is approximately equal to the size of the U.S. economy (depending upon how valuations are calculated in terms of currency conversions), and the more comprehensive 27 nation European Union (EU) is even bigger still. Given the tremendous economic interdependencies among countries of the world, when an economy as large as either of the above entities begins to experience significant economic problems, it is just a matter of time until those difficulties will be transmitted to the rest of the world.
FRANKFURT, Germany — Europe’s plan to fix its debt crisis by imposing budget cuts frayed Monday. Heavy selling rocked financial markets, uncertainty gripped two governments, and the economic outlook darkened across the continent.
WASHINGTON — The managing director of the International Monetary Fund called on the world’s developed nations on Tuesday to “increase our firepower” to better confront global financial strains like those now in play in Greece and several other Eurozone nations.
NEW YORK — U.S. stocks struggled for direction Monday, unsure of what to make of news about Greece’s debt workout and eclectic announcements from a few well-known U.S. companies, such as mattress maker Sealy and luxury retailer Michael Kors.