Poor Portugal. First
their national soccer team and superstar Cristiano Ronaldo failed to advance
past the group stage of the World Cup.
Now concerns over the solvency of the major Portuguese bank, Banco
Espirito Santo, is creating waves through the global financial system. Stock markets are moving downward on the
uneasiness. Coincidently, Cristiano
Ronaldo is also a paid spokesperson for Banco Espirito Santo (see BES
advertisement).
In this case, and in general, bad news for the stock market
and other securities drives investors to the safety of U.S. bonds. That leads to lower mortgage interest rates
for American homebuyers. So those of you
in the market to purchase a home or refinance are in a position to benefit from
the struggles of Portugal, Banco Espirito Santo, and Cristiano Ronaldo.
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