As political upheaval strikes European countries France and Greece, world stock futures are down. With current France President Nicholas Sarkosy losing to Socialist Francois Hollande and Greek voters rejecting austerity measures already in place, futures in Japan and Australia indexes are both down sharply.
Japan’s Nikkei index is down 2.4% and Australia’s All Ordinaries Index is down 1.3%. While the European voting public has been fooled enough to think that socialism, taxing the rich at 75% and zero austerity will save the day, investors have determined that when it comes to actually paying the bills with real money, that is still somewhat important.
Adding to investors worries, crude oil dropped to below $100 a barrel at $98.49. That is the first time oil has been below $100 since February.
Sarkosy is the first French President since Valery Giscard d’Estaing was voted out in 1981 after what used to be a standard French 7 year single term. Apparently Francois Hollande was able to convince voters in France what US President Barack Obama is still trying to convince American voters of. Namely, that it is a good thing to tax the producers, that is the rich, at some 75% of their income so he can spend even more money and drive France yet further into debt.
While these simple minded Frenchy French voters are partying in the streets now, they will be singing a completely different tune when the money runs out. That is, when someone else’s money runs out and there is zero money to pay for even the slightest public benefits like possible sewage treatment. Good luck France!
Investors with money that powers government programs for the foolish wait anxiously for market reactions on Monday and the rest of this week.
