As rumors circulated about an imminent default of Greece, Germany’s representative to the European Center Bank, Jürgen Stark, resigned – perhaps frustrated by the direction of varied Eurozone bailouts. Other noteworthy events during the week included 1) a speech by U.S. Federal Reserve Chairman Ben Bernanke which did not suggest addition stimulus actions, 2) U.S. President Obama’s high profile “jobs plan” speech, 3) the first meeting of the congressional “Super Committee” appointed to determine $1.4 trillion in U.S. budget cuts by late November, 4) the potential that Moody's Investor Service will downgrade BNP Paribas, Societe Generale and Credit Agricole and 5) the financial collapse and closure of solar technology firm Solyndra LLC – a recipient of a $535 million U.S. Department of Energy loan in addition to $1billion in private sector investments.
MY TAKE: Concerns are increasing that the politicians and central bankers that poorly managed economic growth over the past decade are increasingly challenged in addressing the complexities of the current economic mess. While we may be closer to a market bottom, the path will be bumpy and uneven. Stay focused!