Global markets were jubilant in December when the ECB (European Central Bank) pumped 490 billion euros of three-year loans into the EU banking system. As of Monday January 16th, the ECB had 493 billion euros on overnight deposit — more than the entire December stimulus package. When money is trapped in the banking system, the economy suffers and extra stimulus measures don’t help to revive it. Wednesday’s data showed the eurozone grew at its strongest rate since the second quarter of 2013, while France’s economy expanded at its fastest pace in two years. While the interest rate on these securities is fixed, the par value increases with the Consumer Price Index. Interestingly, all of these “improvements” lowered the reported rate. In a down market most people won’t put money in home improvements because the return isn’t there. Right now MSCI world equities are up around 16% over one year, versus global bonds down around 1.8% so this pattern is unchanged.

Talks have broken down once again, but as before will once again be resuming shortly. Yet, every mainstream news article has comments from well-placed sources that are hopeful that some resolution will be coming to the EU’s problems soon. Adding juice to the rally was the news that the German and French had a plan to recapitalize the EU’s crumbling banking system. When you plan to invest, it would be wise to get a financial adviser, a real estate agent or a professional that can put your best interest forward. This indeed caused a temporary decline in interest rates, especially for Spain and Italy. Moody’s just announced it was planning on downgrading 114 European financial entities including 7 in Germany, 9 in Great Britain, 10 in France and over 20 each in Spain and Italy. Banks have lent too much money to not just Greece, but to Portugal, Spain, Italy and Eastern European countries as well. The percent now is over 70% (the ECB has lent out 664 billion euros in total) meaning things are in much worse shape in the EU than they were after Lehman Brothers collapsed.

Even during the height of the 2008 Credit Crisis, EU banks kept only around 33% of money lent out by the ECB on deposit. UBS, Credit Suisse and Morgan Stanley could be reduced three notches. Global banks Nomura and Bank of America are in line for a one-notch downgrade, while Barclays, BNP Paribas, Credit Agricole, Deutsche Bank, HSBC Holdings and Goldman Sachs could have their ratings lowered two notches. Goldman Sachs and Macroeconomic Advisers raised their growth forecasts for third quarter U.S. U.S. stocks had a major rally on Columbus Day based on the French and German leaders’ mystery plan to recapitalize EU banks and on raised forecasts for U.S. This is a number that you will want to think about carefully and when you have some type of guideline you will not be tempted to invest more as you already have a investment number and plan in place. Big moves in the market are more likely when many traders are away and the people who want to move the market know this. Conventional wisdom says older investors who are getting closer to retirement should reduce their exposure to risk by shifting some of their investments from stocks to bonds.

Unfortunately, because of extremely loose industry standards, it isn’t easy to find an advisor who is qualified and one you can trust. The lack of information can mean only one of three things. Weaker economies mean more downgrades from the ratings agencies can be expected. While it is certainly possible that the government will report GDP growth of 2.5% in the 3rd quarter, this does not mean that the U.S. Greece’s GDP is shrinking 7% this year and additional budget cuts will only make the situation worse. This is how GDP reporting works in the United States. Nor is it mentioned that the Japanese with similar problems in their financial system have now been hopeful for twenty years that their economy will fix itself. Most male bloggers should be drooling by now. The way your business logo appears now is what your company stands for visually. The company is also actively working to refurbish and refresh its line, with a move toward higher-end brands and models. Trading penny stocks is not a get rich quick system.