Gold rush points to further economic weakness?
The Dow closed 1.5% down on Friday following a turbulent week with varying signals on the direction and effects of the Eurozone crisis packages. The week ended with more or less everything down apart from Gold that strengthened. The fact that Greece is not the only country in serious trouble started to sift through the golden glow of the Greek support package. The common message directly after the package release was that the truly huge lifesaver must surely be enough to counteract the absurd lack of Greek tax regulations and enforcement.
For a country that has a Very Large Bill to pay for the state employed mass it seems a bit odd to not have functioning tax machinery, but Greece is not alone. Most of the Mediterranean countries within the EU have, to put it discretely… slack tax enforcement. In short, the “tax free”, undeclared economy in some of these countries is just as large as their yearly defecit.
Back to the Gold which traditionally gains during bad times. Let´s keep an eye on that during the coming week. Monday is a special day that will set the pace because of incoming stats.
Related posts:
- Greece gets help from EU in more trouble
- US Futures down on Greece is Spain next?
- Dow shows strength on weak market day
- Standard & Poor grades Greek economy as junk
- Dow stumbles on expected Bernanke statements
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