European Markets Tanking as Eurozone Anxiety Continues
It's a work day for European investors, and it's an ugly one
Fear about the fate of sovereign debt in Europe and the worldwide economic malaise swamped European markets on Monday. The markets were "slammed," The Wall Street Journal said, quoting a European financial expert.
Banks need to raise new capital just as U.S. officials slap them with a lawsuit over mortgage-backed securities trading, The New York Times noted. That bleak fate will likely await American traders when they return to work Tuesday morning.
The biggest problem, The Street declared, was the lack of hiring, with unemployment helping to sap global demand. The only possible outcome might be more action from the Federal Reserve, including a possible third round of its "quantitative easing," intended to inject more money into the world financial system. "Right now the possibility has increased," said Linus Yip, a strategist at First Shanghai Securities in Hong Kong, told The Street. "I think they have to do something. The markets are expecting QE3."