Contagion from the euro zone debt crisis has hit the US in the form of lower confidence and spending by investors and consumers and greater difficulty in borrowing and refinancing mortgages.
Everyone was braced for bad economic news following the disappointing unemployment numbers of last week. However, the week may be ending on a good note following J.P. Morgan’s earnings report.
Euro zone finance ministers agreed to set aside the requirement of making loans only to sovereign governments,and agreed to lend directly to individual domestic banks,. They set up a new euro supervisory structure.
Consumers’ faiths in the integrity and common sense of investors have taken another one-two punch with J.P Morgan’s Loss and now Facebook’s stock decline. Retail investors’ confidence may not recover for a very long time.
The Volker Rule is scheduled for consideration by the House or Senate in July 2012. The bill would prevent banks from engaging in proprietary trading or sponsoring hedge funds or private-equity funds.
If J.P. Morgan Chase were not so large, it would certainly be closing its doors forever. Its indulgence in this latest get rich quick scheme illustrates how too many corporate leaders focus on schemes rather than hard work.