The Sanchez Report

Global Equity Markets Lost $6.3 Trillion in 2011

Many investors are happy to see 2011 come to an end and rightly so. Global equity markets lost $6.3 trillion in market capitalization due primarily to the EU currency and debt crisis. I can't imagine 2012 will be much better. With a US presidential election slated for the Fall and continued macro economic uncertainty in Europe, this year could be extremely volatile and poised to post similar declines. I hope that's not the case!

From the Financial Times:

Almost $6.3 trillion was erased from global stock markets this year as the euro zone financial crisis reverberated across the world in the latter half of 2011, calling into question the future of the world’s largest currency bloc.

Global stock market capitalization dropped 12.1 percent to $45.7 trillion according to Bloomberg data, while the euro ended the year as the worst performing major currency after finally starting to succumb to the continent’s financial and economic woes in December.

he S&P 500 is flat this year while the FTSE 100 has only dropped 5.5 percent. But the Eurofirst 300 gauge of blue-chip European companies has lost 11 percent, led by the French and Italian exchanges. The MSCI Emerging Markets index has shed a fifth of its value despite strong growth in China and other emerging markets.

Asian equity markets were hit particularly hard with Japan’s Nikkei index losing 17.3 percent this year, Hong Kong’s Hang Seng index 20 percent and the Shanghai Composite 22 percent.

While the US economy is showing signs of recovery and most emerging market countries are still growing at a healthy clip, some investors fear that China’s economy could be facing a “hard landing” next year, posing yet another danger to the fragile global economy.

Surprise, Surprise! France, Greece And Spain Require The Most Vacation Time

I'm sure you've heard that Europeans are lazy and do not come close to having the American work ethic. Well. that stereotype happens to be true. The Economist Magazine just published their latest study that ranks Western Nations by the amount of mandatory vacation time required by their respective governments. This vacation time is broken down by public and private sector employees. What's interesting is that those countries that happen to be in the headlines for causing economic turmoil and throwing the European Union into a crisis, are the same countries that top the rankings. Perhaps these countries should slash the amount of mandatory vacation and force their citizens to be more productive and work for a change!

From The Economist:

Which countries give employees the most generous holidays?

WHEN considering the amount of holiday each employee is entitled to in any particular country, some clichés hold good. North Americans are more industrious than South Americans, according to data compiled by Mercer, a consultancy. Asians work harder than Europeans. Among the feckless workers from the old continent, those in the troubled economies of Greece, Spain and Portugal have among the most generous holiday allowances. Take a look at this videographic for more detail.

Spain Rebukes European Socialism

Spain is the latest European country  to rebuke the failed European Socialist model. In a stunning turnaround for Conservatives, Spain elected Mario Rajoy and his conservative People's Party to take over control of parliament. This brings an end to the Socialists rule in Spain. The outgoing Prime Minister Jose Luis Rodriguez Zapatero took control in 2004 in a controversial election marred by a terrorist attack on a Madrid train station. This tragedy cause fear to spread throughout Spain and many voters elected the Socialists in hopes that it would prevent further attacks. The incumbent at the time was Jose Maria Aznar who along with Tony Blair served as George W. Bush's strongest European ally.

Spaniards have become fed up with policies that have nearly bankrupted their country. The far left Socialists are so unpopular that the current Prime Minister Zapatero decided not to run for reelection. The Socialists have spent like there is no tomorrow and taxed their way into an economic meltdown. In many ways, the Obama Administration has adopted the policies of Spain and it is for this reason that President Obama and his Democratic Party is headed for a landslide defeat in 2012. In this defeat, President Obama loses one of his strongest supporters in Europe.

From the Reuters article describing Spain's election:

Ana Maria Lopez, a 53-year-old chiropodist, poured scorn on the Socialists and said she intended to vote on Sunday.

"This government is the worst, everything it touches it destroys. I want a change, I'm fed up with this," she said.

"I'm self-employed, this government has never given anything to the self-employed they only want our money and our taxes."

I hope the White House and the Democrats pay close attention to the developments in Europe because this is indicative of what they can expect to see from the American people next year. Socialism has NEVER worked. The European Socialist model has failed and the love affair the the radical left and main stream media have with this utopian dream is finished.