There was plenty of bearish news in the markets this week. Duetsche Bank is having under pressure and the government slows no sign of bailing it out. What’s interesting to me is that many of the banks that are in financial distress always seem to pass the ECB’s and Fed’s stress tests. The tests must be really easy or “rigged.”
I remember when Enron was thought to be the best managed US company and got consistently high markets from the financial markets. Basically, it was great until it wasn’t great.
And then there is China. The country’s exports fell 10% year over year last month, a much steeper decline than anticipated. Also imports also showed a significant drop. Despite all the talk of green shoots, China’s economy is slowing. All those companies, notably raw materials, have been affected.