Road to U.S. recovery goes through Rome Debt crisis in Italy. Secondly here is a few words about the very big picture

http://www.marketwatch.com/story/road-to-us-recovery-goes-through-rome-2011-11-13?siteid=rss&rss=1

This article is not only about Europe but how the American economy performs. If the European debt crisis was not looming the company results, inflation and increasing consumer spending would put US in a good economic situation, according to the article. I doubt that. I think the national and especially the private debt in the US and Britain sooner rather than later will punish those which prints money to cover its debt. Europe except England do not print money so far because of Germany's definitive no to even that thought. For hundreds of years governments have printed money to make ends meet and as far as I know no country have avoided severe economic aftermath in that way. Of course US can go on this way, maybe for many years, but one day the economy will collapse. If Europe collapses because they refuse to print money that does not mean America and England are safe by doing so.

In May we had all the indexes at the top. I have calculated how much each index has lost in value from that top until last Fridays's close.

Index                              Percentage loss

DOW                                     6

SP500                                    8

FTSE                                     9

SWED                                  17

DAX                                     20

IBEX                                    22

CAC                                    24

MIB                                     30 

The monthly charts of course look different. The US and English indexes fall steep but also recover very strongly every month. The European indexes fall steeply but does not recover that much. Why this is could be the more advanced computer trading systems and the much frequently used short positions in the US especially. I also think that manipulation is easier to do with the DOW index which SP500 always mainly follow.

Only DOW and SP500 have the chance to reverse the bear market. All other indexes cannot technically do that. SP500 has a less chance than the DOW. That is one of reasons I have followed DOW in this blog.