Eurozone Woes Persist
Although markets were closed on Sunday, eurozone continued to cause concern as rumours were running wild that Slovenia would be the target of the next bailout. According to reports, the Slovenian government has refused to privatise its banks and thus spurred the downfall of its banks that gave massive loans to shady businesses. Slovenia must recapitalize its banks, but does not have the money for it. If the history of the ailing eurozone is any indication, the next weeks and months will evolve around a plethora of requests, negotiations and deals between the parties involved. By the time the show is over, Slovenia has gotten its money and the eurozone if off to put out another bushfire. Tomorrow morning will tell if the early reports emanating from Slovenia have already infected the minds of the investors. Nevertheless, it seems that Mario Draghi’s calming words last week can be nullified if Slovenia is the next country in line. Keep an eye on the euro!