So much for the housing recovery. If Europe was not enough of a concern, the pending home sales index is sure to give investors pause. An index of pending home sales saw its first drop in four months, deepening the already dark mood that is pervasive on the street today.
Internationally, the mood is especially dark as Spanish bond yields reach unsustainable levels. A plan is being floated to allow the permanent rescue fund to directly recapitalize ailing EU banks. Currently the fund can only lend out the money to the member states who can then bail out ailing banks. This would make the process more streamlined. Sign Up For Free Alerts
Another part of the proposal is common EU bonds, which Germany is strongly against. As the strongest economy in the EU, they do not want to be set up to foot the bill of ailing member states.
A current snapshot of market has the Dow down 151, the Nasdaq 42 and the S&P 18. [Read more...]