Global Economy and the Financial System on the Cliff’s Edge?

The illusion of economic stability convinced most people that the great economic crisis of 2008 was exceeded. The truth is that it’s just beginning, and the next wave of crisis is very close. Europe is experiencing economic depression and is only a matter of time before the U.S. will follow.

Unemployment rate at high alert

Published last Friday, this index shows a new historic high in the euro area unemployment rate: 11.9%. In Italy it rose to peak last 21 years, while in Greece reached 27%. More worrying is the unemployment rate among young people under 25 years: in Greece and Spain is close to 60% and in Italy and Portugal is 40%.

Jobs crisis is a direct consequence of the global crisis of 2008 and may generate a political crisis. In general for each unemployed person three people have to suffer. For the euro area the real test is not the debt crisis, but how to avoid the consequences of high unemployment.

Historic day, Dow surges to record highs

Service sector grows at fastest pace in a year

 The pace of growth in the vast U.S. services sector accelerated to its fastest pace in a year in February, helped by a rise in new orders and demand for exports, an industry report showed on Tuesday.

The Institute for Supply Management said its services index rose to 56 from 55.2 in January, exceeding economists’ forecasts for 55. It was the highest level since February 2012.

A reading above 50 indicates expansion in the sector.

The new orders index jumped to 58.2 from 54.4, while orders for exports rose to their highest level since May 2007 with that gauge at 60.5, up from January’s 55.5.

After hitting an intraday record at the open on Tuesday, the Dow Jones Industrial Average extended gains after the service sector data.

If the Dow ends the day at these levels, it will also set a new record closing high, above 2007’s 14,164.53.

Shortly after the opening bell, the Dow rose above 14,198.10, the intraday all-time high reached in October 2007, when the world was heading toward the financial crisis.

Analysts said Tuesday’s advance was due less to one specific catalyst and more to the same factors that have been driving the rally this year, namely attractive valuations and liquidity from loose monetary policy around the world.

The Dow Jones industrial average was up 129.77 points, or 0.92 percent, at 14,257.59. The Standard & Poor’s 500 Index was up 13.72 points, or 0.90 percent, at 1,538.92. The Nasdaq Composite Index was up 33.12 points, or 1.04 percent, at 3,215.15.