20 Highly Recommended Financial Dividend Shares | Stock Buy List
As we all know by now, the problems in the European Union are starting to increase by the moment. Many investors are now talking about a complete breakup of the European Union as we know it. The debt problems in all of these nations is simply becoming to much to for the European Central Bank (ECB) and the International Monetary Fund (IMF) to handle. In other words, debt can only bail out debt for so long. Has the debt society as we know it finally come to an end?
This morning, all of the leading financial stocks are catching a bid higher. This is the first real bounce for this important sector in about a week. The most important financial stock in the market is J.P. Morgan Chase & Co (NYSE:JPM). This leading financial stock is is trading higher by 0.68 cents to $41.30 a share.
This afternoon, the Federal Open Market Committee (FOMC) will announce there interest rate policy statement. Most traders and investors are expecting the Federal Reserve to keep the Fed funds rate (overnight lending rate to the large banks) at zero percent. It is important to note that the Fed funds rate has been at zero percent since December 2008.
All of the leading financial stocks are coming under some selling pressure this morning. The important Financial Select Sector SPDR (NYSE:XLF) is finally declining after an eight day rally. On November 25, 2011 the XLF was trading as low as $11.73 a share. Today the XLF is trading lower by 0.21 cents to $13.12 a share.
All Of The Players Are In Place For An Inflation Extravaganza
Yesterday, all of the major stock indexes around the world surged higher after the central banks announced the coordinated intervention for the banks holding European debt. This action by the central banks is a repeat of the action taken back in September 2008. We all know what happened shortly after that intervention in 2008 as the stock markets cratered into March 2009.
Germany is considered the most important country in the European Union. This country now has to decide if it is willing to go all in and allow the European central bank to have complete control over the banking crisis that is taking place. France has already been pleading for the European Central Bank (ECB) to start to print money to bailout the European banks.
The plot thickens again in the soap opera of the European Union. One day there is a $1.4 trillion bailout fund in place and the next day that deal is falling apart at the seams. One day Greece is on board with austerity measures and the next day they might be back to using the Greek Drachma. This Greek drama continues to get better by the minute.
In lasts week's report we focused on the debtor nations of the European union, which is all of them. This week we shall focus on the large banks that hold much of the debt issued by those nations in the Euro-zone. This past Friday, all of the major bank stocks ended the trading session with a sharp sell off.