Volatile Stock Week Ends Up And Peaceful
What a wild ride on Wall Street this past week. With worries about many countries in the European Union, the fall of the price of oil, and of course the massive oil spill that seems to be taking a life of its own, numbers were dropping for much of the week, even falling below that magic 10,000 number early Friday.
Then, without much fanfare, stock prices started going back up, finally closing the day at 10,193.39. This was after Germany pushed through its own package of emergency aid to help get the region back to some kind of fiscal balance.
The reality that many of us have to realize is that in today’s world there has to be a great consideration of what’s going on in other countries as it pertains to their financial health. There are so many American companies tied in to the infrastructure of other countries, and of course exports and imports to other countries are a big deal.
If other countries can’t afford to buy American goods, then it affects American businesses. If our country is in trouble and starts holding onto its money, then companies in other countries will be in trouble as well.
Banks really proved to be a big deal in 2008 and 2009 when they had to be bailed out. It wasn’t necessarily because the United States would have been injured, but because those banks had their tentacles into so many other countries that it could have caused a world wide catastrophe. Some of us didn’t like it, but at least the government’s heart was in the right place.
In any case, Friday’s rise ended a 3 day skid, which included a 376.36 point drop, or 3.6% drop on Thursday, which was the largest percentage drop since March 5, 2009. It’s no wonder everyone on Wall Street was breathing a collective sigh when the bell rang on Friday.